Evercore ISI: The AI boom will drive US stocks to rise another 20% by the end of next year.

Jin10 data reported on September 1 that Evercore ISI strategists indicated that U.S. stocks are expected to rise another 20% by the end of 2026, mainly driven by the surge brought about by artificial intelligence. Julian Emanuel, Evercore ISI's Chief Equity and Quantitative Strategist, wrote in a report that the S&P 500 index is expected to reach 7,750 points by the end of next year, stating, "A technological revolution is driving stocks, valuation multiples, and society to new heights." This target implies a rise of 20% from last Friday's closing level and will continue the nearly 10% increase seen this year. Emanuel's 2026 target is currently the highest prediction on Wall Street. He pointed out that the impact of artificial intelligence has led to sustained earnings exceeding expectations for companies. The second quarter achieved "double-digit growth and widespread upside surprises, despite ongoing tariff and policy uncertainties." Emanuel also raised his forecast for 2025, expecting the S&P 500 index to close at 6,250 points by the end of the year.