Goldman Sachs expects the global stock market rally to continue through the second half of 2026, though at a potentially slower pace than the first half. Peter Oppenheimer, Goldman's chief global equity strategist, stated on July 1 that these gains will be supported by strong and broadening corporate earnings. He highlighted that while the initial rally was strong, future gains will likely be more widespread across sectors.
Technological advancement, particularly in artificial intelligence, is identified as a key driver of earnings growth. Oppenheimer and other Goldman Sachs analysts predict that the increased spending by "hyperscalers" (large cloud providers) on AI infrastructure will fuel earnings across various industries, including semiconductor and equipment manufacturers. This capital expenditure is projected to remain significant, creating substantial revenue opportunities.
Specifically, Ben Snider, a Goldman Sachs analyst, points to AI infrastructure stocks as a prime opportunity. He notes that hyperscaler capital investment is projected to reach $650 billion in 2026, a 59% increase from $410 billion in 2025. This massive spending is expected to significantly boost S&P 500 earnings, with Goldman's 2026 EPS estimate rising from $297 to $313. Snider emphasizes that with a forward price-to-earnings ratio near 21x, future S&P 500 gains will primarily come from earnings delivery rather than multiple expansion, making industries like hyperscalers and power infrastructure central to this growth.
