S&P 500 Driven by AI Spending Surge | Durham News

The S&P 500 is poised for new highs by 2026, fueled not by hype but by robust profit growth—Goldman Sachs now forecasts $340 EPS and a year-end target of 8,000, up from earlier estimates. Half that growth stems from AI infrastructure spending, with hyperscalers investing $754 billion in 2026—a 83% jump. Semiconductors are the big winners, but the risk? A few key players pulling back could derail the rally. NVIDIA’s revenue surge? 92% from data center chips. Goldman’s positioning indicator is at its lowest since March 2026, which may cushion any downturn. AI is also expanding into productivity tools, adding 0.4% earnings this year and 1.5% in 2027. But watch out: this boom depends on quarterly capex decisions from Microsoft, Alphabet, Amazon, and Meta—not broad economic trends.

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This is an automated, high-level news summary based on public reporting.
Sources:
https://www.heraldsun.com/news/business/article317288335.html#storylink=partnerdigest_the

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