Evercore ISI projects substantial upside for US stocks, forecasting the S&P 500 at 7,750 by the end of next year and a 2026 bull-case of 9,000 or a bear-case of 5,000. The firm raised its 2025 target to an end‑of‑year level of 6,250. Rapid AI adoption is cited as a key driver, with earnings outperformance and double-digit second-quarter growth despite tariff and policy uncertainty. The recent rally has been concentrated in technology names such as Nvidia, Meta and Microsoft, with markets buoyed by strong corporate results and hopes for interest rate cuts.
(Bloomberg/Julien Ponthus) US stocks can rise another 20% by the end of 2026, driven by the excitement around artificial intelligence, according to strategists at Evercore ISI. The S&P 500 is forecast to reach 7,750 points by the end of next year, with a technological revolution lifting stocks, multiples and society to new heights, Evercore ISI chief equity and quantitative strategist Julian Emanuel wrote in a note.
The strategists wrote that the impact of AI means earnings have been defying expectations. The second quarter delivered double-digit growth and broad upside surprises despite tariff/policy uncertainty, they wrote. US stocks have gained for four straight months, hitting fresh records multiple times, on optimism around robust corporate earnings and potential interest rate cuts. The rally has been driven by the tech sector, with the likes of Nvidia Corp., Meta Platforms Inc. and Microsoft Corp. all up at least 20% this year.
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