Goldman Sachs: Internet Sector Lags Market, AI Returns in Focus

Goldman Sachs' August 25, 2026 report noted that the internet sector rose 9% overall in Q2, underperforming the S&P 500's 11% gain. AWS Q2 revenue grew 37% year-over-year, with operating margins hitting a record 39%; Google Cloud revenue grew 81% year-over-year. The two cloud vendors' combined backlog exceeded $1 trillion. Digital consumption remained broadly stable, but consumer divergence is intensifying: high-income groups maintain strong spending intent, while lower-income groups are becoming more cautious.

Goldman Sachs will host its Communacopia technology conference in San Francisco from September 8-11, with 40 companies attending, including OpenAI, Google Cloud, SpaceX, and Uber. Goldman believes market patience with AI returns is narrowing, and management's ability to clearly address "when, how much, and what returns" on AI investment will be key to valuation divergence. The conference's three main themes are AI spending growth vs. return curves, digital consumption resilience, and the balance between investment and profitability.