AI revolution could lift S&P 500 to 7,750 next year, strategist says

One of the Wall Street strategy turns up more up to the S&P 500 (^GSPC) with a continued high measurement index to record high levels.

Julian Emmanuel, ISI Evercore strategy, has strengthened his goal at the end of 2025 on the index to 6,250 of 5600 and now it is seen that S&P 500 climbs about 20 % to 7,750 by the end of 2026, backed by what technological transformation he calls one time to virtual intelligence.

In the short term, the call is a modest decline in the current levels. Emmanuel’s long -term expectations are more optimistic, which confirms his view that the adoption of artificial intelligence will lead to high profits and assessments.

His bull case goes further: Emmanuel imagines the S&P 500 to 9000 if the “asset bubble that AI moves” control, a scenario that warns him can nourish it in excessively consecutive nutrition even with the continued pressure of inflation.

Emmanuel said that the corrections of 10 % or more are possible along the way, but are seen as purchase opportunities within the structural rise market.

“Twice in Age,” Emmanuel wrote in a note on Sunday, and compared to a gathering day that artificial intelligence moves with the Internet in the 1990s. He says that the difference this time is that the adoption of artificial intelligence is revealed more quickly, gives up a broader set of industries and created broader investment opportunities.

In addition to his new goals at S&P, the strategic expert raised his profits to $ 264 of the share profitability for 2025 from $ 255 and $ 287 for 2026 from $ 272, citing both flexibility in customs tariffs and raising productivity from artificial intelligence.

Predictions expect an echo a wider theme that others confirm in Wall Street: The profits are still the main driver of stocks.

FactSet data published on Friday showed that with the mention of 98 % of the S&P 500 companies, the second quarter profits are on the right path to increase by 11.9 % on an annual basis-which represents the third quarter in a row of two-number growth.

Positive surprises were widespread, as 81 % of the companies that overcame the arrow profit estimates, while the wonderful seven shares were distinguished again, as they recorded a 26.6 % profit growth compared to 8.1 % for the rest of the index.

Citi, which maintained her 6600 -year -old expectations, has repeated her profit expectations for the entire year of $ 272 on Monday, pointing to flexible politics and spending support as an additional rear commander.

The American stock strategy team, led by Scott Kronrtrt, said that the 600 -year -old goal reflects confidence in the continued momentum of profits after the results of the strong second quarter, “less worse than” the effects of tariffs on companies, and new tax incentives than “a major bill, beautiful, beautiful”.