Goldman’s Rich Privorotsky says the AI trade has hit a pause as sentiment softens on weak headlines ranging from project returns to Altman’s “bubble” warning. While still bullish long-term, he flagged risks of overcapacity and argued the next wave may need fresh innovation, not just bigger compute.-Goldman’s head of Delta One, Rich Privorotsky, said the AI trade has stalled in the near term, with sentiment dented by a series of headlines. These include an MIT paper questioning AI project profitability, Meta’s hiring slowdown, disappointment over ChatGPT-5, Sam Altman’s “bubble” comments, and an Apple paper stressing that large language models do not truly “think.”Privorotsky noted that caution is warranted heading into Nvidia’s results (due Wednesday US time), with meaningful visibility only likely to come in January when major firms outline capital spending plans.Longer term, he remains strongly bullish on the technology, but argued the current “more compute equals better output” mindset is unsophisticated. He suggested the next wave may come from quantum or other breakthroughs, warning that excess capacity could require a reset before innovation drives the next leg higher. This article was written by Eamonn Sheridan at investinglive.com.