Technology's seven giants once again dominate the US stock market, Goldman Sachs says core earnings are overvalued by the market.

Goldman Sachs Group, Inc. stated that while the overall profit performance of stocks in the S&P 500 index in the first quarter of this year exceeded expectations, the investment-related gains of some large technology companies significantly boosted the overall data, leading to a possible overestimation of corporate profit growth. The research team at Goldman Sachs Group, Inc. pointed out that the year-on-year profit growth rate of companies in the S&P 500 index for the first quarter was close to 25%. However, the investment gains from companies such as Amazon.com, Inc. (AMZN.US) and Alphabet Inc. Class C (GOOG.US, GOOGL.US) made a significant contribution to overall profits, thereby somewhat distorting the market's assessment of corporate profit conditions. Goldman Sachs Group, Inc. stated that after excluding the impact of investment gains, the actual underlying profit growth rate of S&P 500 companies is closer to 16%. While this level still shows that the overall profit capabilities of American companies remain robust, it is significantly lower than the growth rate indicated by surface data. In the current U.S. stock market, the influence of a few large technology companies on overall index profits and valuations is growing, especially during earnings seasons, this phenomenon becomes more pronounced. With the continuing rise of artificial intelligence investments, large technology companies are further widening the profit gap with traditional industries through cloud computing, AI infrastructure, and capital investment gains. As a result, the market is paying more attention to the "quality" and "sustainability" of corporate profit growth, rather than just the data itself. Goldman Sachs Group, Inc. believes that as the market continues to evaluate valuation levels, economic growth momentum, and future prospects for corporate capital expenditures, investors may increasingly focus on the core profit performance after excluding one-time gains. Recently, leading AI companies such as NVIDIA Corporation (NVDA.US), Amazon.com, Inc., and Alphabet have continued to drive the rise of the U.S. stock indexes, further reinforcing the dominant role of large technology companies in the overall market performance.