Jefferies Says AI Rally Supported by Strong Earnings Growth
According to Jefferies strategists, artificial intelligence-linked stocks are driving over 80% of the S&P 500's gains in 2026 due to strong earnings growth rather than speculative trading. The firm notes that forward earnings estimates for AI-related companies have risen by more than 30%, with a projected compound annual growth rate (CAGR) of 38.5% through 2027, significantly higher than other sectors.
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