By Julien Ponthus and Levin Stamm

(Bloomberg) -- US stocks will scale new records next year on higher earnings as artificial intelligence is more widely adopted and economic growth remains resilient, according to Goldman Sachs Group Inc. strategists.

The team led by Ben Snider expects earnings-per-share at S&P 500 companies to jump 12% next year and 10% in 2027. Of that, AI-driven productivity gains will contribute about 0.4% and 1.5%, respectively.

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“The process of AI adoption remains early, but large companies report more progress so far than smaller firms,” the strategist wrote in a note. “We expect a combination of healthy nominal top-line growth, a fading drag from tariffs, and continued earnings strength for the largest stocks in the index.”

Snider, who is replacing David Kostin as chief US equity strategist at the end of the year, reiterated his target for the S&P 500 to trade around 7,600 points next year, implying gains of 10% from current levels.

Other market forecasters as well as asset managers also share that optimism. Strategists at teams including Morgan Stanley, Deutsche Bank AG and RBC Capital Markets LLC have called for US stocks to jump more than 10% in 2026.

Meanwhile, an informal Bloomberg survey found global money managers are betting on the rally to continue, as confidence in the economic outlook drives the S&P 500 to fresh records. Still, there are lingering concerns that massive spending on AI may be leading to a bubble in the technology heavyweights.

READ: What Bubble? Asset Managers in Risk-On Mode Stick With Stocks

Goldman’s Snider said the tech cohort will continue to be a key driver of overall earnings next year. The strategist expects the biggest S&P 500 stocks by market cap — Nvidia Corp., Apple Inc., Microsoft Corp., Alphabet Inc., Amazon.com Inc., Broadcom Inc. and Meta Platforms Inc. — to make up about 46% of the index’s profit growth in 2026, only slightly below their contribution this year.

Analysts tracked by Bloomberg Intelligence expect net income at S&P 500 companies to jump 14% in 2026, driven by an 18% increase at the Magnificent Seven.

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