Goldman Sachs: AI-related companies account for 40% of the S&P 500 market capitalization

ChainCatcher report: The AI wave is disrupting the traditional asset allocation logic of pensions and sovereign funds, with risks spreading from tech stocks to private equity, corporate bonds, infrastructure, and other sectors. Institutional investors are reassessing their overall AI exposure. Goldman Sachs estimates that companies related to AI infrastructure account for approximately 40% of the total market capitalization of the S&P 500; Apollo data shows that AI-related issuances accounted for nearly half of all investment-grade bond issuance this year and 87% of venture capital funding. Monte Tarbox, CIO of the New York City Retirement Systems, recently rejected a fundraising request from a private fund due to its excessive AI exposure. Institutions currently face the challenge of lacking a standardized metric to measure AI exposure. The Los Angeles County Employees Retirement Association estimates that 8% to 19% of its portfolio is AI-related; an Invesco survey of 90 sovereign wealth funds found that over half consider market concentration the top risk associated with AI investing. Some large institutions are adopting a holistic portfolio approach, tracking AI exposure and correlations across assets at an overall level, while others are beginning to use AI tools to monitor their own portfolios.