Goldman Sachs Raises S&P 500 Earnings Forecast as AI Spending Drives Growth
Goldman Sachs has raised its 2026 earnings-per-share (EPS) forecast for the S&P 500 to $340, projecting a 24% annual profit growth. This upgrade underpins an updated year-end target of 8,000 for the index, up from 7,600 previously. The firm attributes much of this expected earnings momentum to AI infrastructure spending, which is estimated to account for roughly half of S&P 500 earnings growth in 2026. Goldman Sachs notes that hyperscale technology companies are set to increase capital expenditures significantly, with $754 billion projected in 2026—a jump of 83% from the previous year. NVIDIA is highlighted as a central player in this trend, having reported Q2 revenue of $96.2 billion, driven largely by data center sales tied to AI infrastructure demand. However, Goldman also warns that earnings growth remains highly concentrated and vulnerable if major hyperscalers reduce spending. The firm’s positioning indicator has hit its lowest level since March 2026, suggesting potential seasonal risks ahead.
Topics: AI Infrastructure Spending Earnings Per Share (EPS) Goldman Sachs Market Outlook S&P 500