David Solomon Says Technology Supercycle Will Have 'Bumps'

What happened

David Solomon of Goldman Sachs said the technology supercycle will have bumps, according to Bloomberg. He also described the US economy as resilient. The article gives no further details on his remarks.

Confirmed

Global impact / market context

Technology spending has driven revenue and profit growth for many companies, so a bump means slower orders and weaker sales for suppliers and customers. Goldman Sachs itself earns fees from dealmaking and advisory work tied to technology companies.

Analyst inference

Solomon's view comes as investors weigh how long the technology spending boom lasts. Calling the US economy resilient suggests he sees continued demand, but the warning of bumps signals possible slowdowns in technology-related revenue and capital spending.

Analyst inference

What to watch

1. Solomon's comments were reported by Bloomberg and relayed in the article, which gives no figures, forecasts, or timing for the technology supercycle or the bumps he described. Confirmed
2. Watch for future remarks from Solomon or Goldman Sachs that specify what bumps means, such as slower technology spending, weaker demand, or reduced investment by companies. Proposed
3. Track technology capital spending and sales at major technology companies, because a slowdown there would reduce revenue for suppliers and could weigh on Goldman Sachs advisory and dealmaking fees. Analyst inference

Evidence

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