Evercore predicts S&P 500 to reach 7,750 points by 2026, fueled by AI enthusiasm.

Evercore ISI predicts a 20% rally for US stocks by 2026, driven by enthusiasm around AI. The S&P 500 is expected to reach 7,750 points by the end of next year, with a technological revolution boosting stocks, multiples, and society to new heights. This projection is the highest on the Street, according to Bloomberg data.

US stocks are poised for a significant rally, with Evercore ISI predicting a 20% increase by the end of 2026. The S&P 500 is forecast to reach 7,750 points by the end of next year, according to the firm's strategists. This projection is the highest on the Street, as reported by Bloomberg [1].

The optimism is driven by the excitement surrounding artificial intelligence (AI). According to Evercore ISI, AI has already begun to transform various sectors and industries, with earnings defying expectations despite tariff and policy uncertainties. The second quarter of 2025 saw double-digit growth and broad upside surprises, further fueling investor confidence.

The tech sector has been a major driver of this rally, with companies like Nvidia Corp., Meta Platforms Inc., and Microsoft Corp. all experiencing at least 20% gains this year. The S&P 500 has gained for four consecutive months, hitting new records multiple times, as investors remain optimistic about robust corporate earnings and potential interest rate cuts.

However, Evercore ISI acknowledges a range of possible outcomes for 2026. Their bull case envisions the index reaching 9,000 points if consumer, business, and investor confidence surges. Conversely, a bear case sees the index dropping to 5,000 points if inflation remains high and economic growth is subdued.

The firm also raised its 2025 target for the S&P 500, now expecting the benchmark to end this year at 6,250 points. This projection is slightly lower than the average target among strategists tracked by Bloomberg.

In summary, Evercore ISI's prediction of a 20% rally for US stocks by 2026 reflects the growing enthusiasm around AI and its transformative potential. The firm's strategic outlook highlights the importance of AI in driving earnings growth and market performance.

References:
[1] https://finance.yahoo.com/news/ai-euphoria-fuel-20-p-111516899.html
[2] https://www.ainvest.com/news/evercore-isi-upgrades-henry-schein-outperform-sets-83-price-target-2508/
[3] https://www.ainvest.com/news/tsmc-path-2-trillion-market-cap-strategic-positioning-ai-era-undervalued-growth-potential-2508/