AI Revolution May Boost S&P 500 by 20% to 7,750 by End of 2026, Evercore ISI Says

Evercore ISI strategists predict a 20% rise in the S&P 500 Index by the end of 2026, driven by a tech revolution fueled by artificial intelligence. The benchmark currently trades at 6,460. Meanwhile, precious metals have more than doubled in price over the past three years, with silver topping $40 an ounce for the first time since 2011 and gold moving closer to its April record.

Evercore ISI strategists predict a 20% rise in the S&P 500 Index by the end of 2026, driven by a tech revolution fueled by artificial intelligence. The benchmark currently trades at 6,460. Meanwhile, precious metals have more than doubled in price over the past three years, with silver topping $40 an ounce for the first time since 2011 and gold moving closer to its April record.

The tech revolution is being propelled by advancements in AI, which are transforming various industries. One of the key drivers is the strategic partnerships between Reliance Industries and global tech giants like Google and Meta. These collaborations are focused on building green-energy AI infrastructure in India, leveraging gigawatt-scale data centers and cloud services. Reliance's AI ambitions are anchored in Reliance Intelligence, a wholly-owned subsidiary tasked with building gigawatt-scale data centers powered by green energy [1]. This infrastructure is not just a technical feat but a strategic one, ensuring cost-competitive AI compute power and aligning with global decarbonization trends [2].

The partnerships with Google and Meta amplify this vision. With Google, Reliance is deploying a dedicated AI cloud region in Jamnagar, integrating Google’s hypercomputer capabilities with Reliance’s clean-energy infrastructure to serve sectors like energy, retail, and finance [3]. Meanwhile, the $100 million joint venture with Meta, where Reliance holds a 70% stake, will deploy Meta’s Llama-based AI platform-as-a-service, offering customizable generative AI models for Indian businesses [4]. These collaborations are not mere partnerships but ecosystem-building moves, ensuring Reliance’s AI infrastructure is both scalable and globally competitive.

The timing of Reliance Jio’s IPO, slated for the first half of 2026, is significant. The listing aims to monetize Jio’s AI and 5G investments while expanding its global footprint [5]. Analysts project the IPO to raise $6 billion, with a valuation exceeding $112 billion, driven by Jio’s 500 million user base and its 50% EBITDA margin [6]. The IPO will fund Jio’s AI infrastructure expansion, including 5G network upgrades and cloud services, creating a flywheel effect: more users, more data, and more AI-driven revenue streams [7].

India’s AI market is projected to grow from $7.84 billion in 2025 to $257.45 billion by 2035, at a 25.24% CAGR [8]. Reliance’s AI initiatives are uniquely positioned to capture a disproportionate share of this growth. For instance, its JioBrain platform and AI-enhanced services like JioFrames (AI-enabled smart glasses) and JioStar (AI-powered media) are already disrupting consumer and enterprise markets [9]. The IndiaAI Mission’s $1.2 billion investment in AI infrastructure, including a 18,600 GPU computing facility, further validates the sector’s potential [10].

While startups like Jio Haptik and global players like Microsoft are vying for AI dominance in India, Reliance’s ecosystem advantage is unmatched. Its control over 5G networks, retail channels (250 million customers), and digital services (JioHotstar with 600 million users) creates a data moat that rivals cannot replicate [11]. Moreover, the company’s focus on India-specific AI solutions—such as Llama-based models tailored for local languages and use cases—ensures relevance in a market where one-size-fits-all approaches often fail [12].

In conclusion, the tech revolution, driven by AI, is set to significantly impact the S&P 500 Index by the end of 2026. Strategic partnerships, green-energy infrastructure, and a robust IPO plan position Reliance Industries as a key player in this transformation. Investors should closely monitor these developments as they could shape the future of the tech sector and the broader market.

References:
[1] Reliance AGM 2025: Mukesh Ambani launches Reliance Intelligence, partners with Google, Meta to drive India's AI revolution [https://m.economictimes.com/industry/cons-products/electronics/reliance-agm-2025-mukesh-ambani-unveils-new-subsidiary-reliance-intelligence-to-drive-ai-ambitions/articleshow/123581637.cms]
[2] India's Reliance ties up with Google and Meta to drive AI push [https://www.cnbc.com/2025/08/29/indias-reliance-ties-up-with-google-and-meta-to-drive-ai-push.html]
[3] Google and Reliance Industries Partner to Establish Cloud facility in Jamnagar [https://www.ainvest.com/news/google-reliance-industries-partner-establish-cloud-facility-jamnagar-2508/]
[4] Reliance Industries Strikes AI Deals With Google, Meta [https://ca.finance.yahoo.com/news/reliance-industries-strikes-ai-deals-203649162.html]
[5] Reliance Jio IPO confirmed for early 2026 amid 5G challenges [https://www.rcrwireless.com/20250829/business/reliance-jio-ipo-3]
[6] Reliance Jio charts out global expansion, transforming into deep-tech company [https://www.business-standard.com/companies/news/reliance-jio-charts-global-expansion-transforming-into-deep-tech-co-125082901335_1.html]
[7] Reliance Jio IPO announced: 5 things investors need to watch out for [https://m.economictimes.com/markets/ipos/fpos/reliance-jio-ipo-announced-5-things-investors-need-to-watch-out-for/articleshow/123581865.cms]
[8] India's AI Infrastructure Revolution: Why Reliance's Strategic Alliances with Google and Meta Signal a High-Growth Opportunity [https://www.ainvest.com/news/india-ai-infrastructure-revolution-reliance-strategic-alliances-google-meta-signal-high-growth-opportunity-2508/]
[9] How Reliance Jio's latest AI strategy could disrupt the dominance of big tech [https://m.economictimes.com/tech/artificial-intelligence/how-reliance-jios-latest-ai-strategy-could-disrupt-the-dominance-of-big-tech/articleshow/113013747.cms]
[10] Why AI for India 2030 is a blueprint for inclusive growth [https://www.weforum.org/stories/2025/01/ai-for-india-2030-blueprint-inclusive-growth-global-leadership/]
[11] Reliance Jio's 2026 IPO: A Strategic Bet on India's Digital Future [https://www.ainvest.com/news/reliance-jio-2026-ipo-strategic-bet-india-digital-future-2508/]
[12] India Artificial Intelligence (AI) In Marketing Market Size & Outlook [https://www.grandviewresearch.com/horizon/outlook/artificial-intelligence-ai-in-marketing-market/india]