Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - Goldman Sachs just updated their projection for the S&P 500, aiming for the 7,600 level by 2026. This bold move is largely driven by solid corporate earnings growth and the massive adoption of artificial intelligence.
Keytakeaways:
- Goldman Sachs targets the S&P 500 to reach 7,600 in 2026.
- Seven major tech stocks are set to drive 46% of earnings growth.
- Morgan Stanley sets an even higher target at 7,800.
This target implies a potential upside of around 11% from the last closing price of 6,827. A report from Finbold notes that the index has already rallied 16% throughout 2025 alone.
Tech Giants Leading the Charge
Big tech companies are predicted to remain the main engine for profit growth in the coming years. Goldman expects heavyweights like NVIDIA Corporation, Apple Inc., and Microsoft Corporation to dominate this earnings expansion.
Alphabet Inc., Amazon.com, Inc., Broadcom Inc., and Meta Platforms, Inc. are also projected to contribute to a massive 46% of total earnings growth in 2026. Productivity gains from AI will be the "secret sauce" boosting the revenue of these companies.
Market Optimism and Potential Risks
Morgan Stanley is feeling even more bullish, setting a target of 7,800 by the end of 2026. They view the recent market correction as a solid "buy the dip" opportunity for long-term investors.
However, you should stay alert to risks regarding Fed policies that might slow down. Goldman Sachs warns that pressure on corporate margins could act as a speed bump for the index's climb going forward.
Reference:
- Finbold, Banking giant updates S&P 500 target for 2026. Accessed on December 15, 2025
- Featured Image: Shutterstock
Disclaimer
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