Is It a New Record Year for ABD Stocks?

The Impact of Artificial Intelligence on Economic Growth

Goldman Sachs Group Inc. strategists believe that, due to the widespread adoption of artificial intelligence technologies and a robust economic growth, U.S. stocks could reach notable record levels in the coming year. The team, conducting year-end evaluations, meticulously analyzes the potential increase in stocks, providing hope for investors.

Earnings Expectations and the Role of Artificial Intelligence

Led by strategist Ben Snider, a %12 increase in earnings per share for S&P 500 companies is expected for 2026 and a %10 increase for 2027. A significant portion of this increase is anticipated to stem from the efficiency improvements brought about by artificial intelligence. In particular, earnings increases of %0.4 and %1.5 are expected to be achieved from AI applications.

Strategists' Targets

Snider plans to take over the role of chief U.S. equity strategist from David Kostin next year, setting a target of 7,600 points for the S&P 500 in 2026. This level indicates a %10 increase compared to current levels and serves as an important indicator for investors.

The Advantage of Large Companies

Snider points out that large companies are making more progress with artificial intelligence applications compared to smaller firms. This situation sends a strong signal about how technology could influence stock earnings in the future.

Claims from Other Banks

Other strategists, including Morgan Stanley, Deutsche Bank AG, and RBC Capital Markets LLC, also foresee an increase of more than %10 in U.S. stocks by 2026. They expect technology giants, particularly Nvidia, Apple, Microsoft, Alphabet, Amazon, Broadcom, and Meta, to contribute %46 of the index's earnings growth in 2026.

Expected Increase in Net Income

According to Bloomberg Intelligence data, a %14 increase in net income for S&P 500 companies is forecasted for 2026. Particularly, it is expected that the revenue growth within the group of technology companies known as the “Magnificent Seven” will occur at a rate of %18. This situation will help investors better understand the reasons behind their shift towards the technology sector.