Goldman Sees AI Stocks Stabilizing as S&P 500 Earnings Growth Hits 26%

3 articles · Updated · Yahoo Finance · Aug 3

Goldman Sachs said recent AI-stock turbulence should ease as second-quarter results keep supporting the broader bull market rather than signaling a wider market break.
By July 31, companies making up about two-thirds of the S&P 500's market value had reported, and 64% beat earnings expectations by at least one standard deviation.
AI infrastructure was still a major driver, contributing roughly one-third of second-quarter S&P 500 profit growth and potentially more than half through the rest of 2026 and into 2027.
Spending trends back that view: Goldman expects hyperscaler capital expenditures to exceed $1 trillion in 2027, while Alphabet, Amazon and Microsoft lifted combined cloud revenue growth to 48% from 39%.
Goldman still warned that rising costs and elevated expectations could keep volatility high even with strong earnings from companies such as Alphabet, Amazon, Microsoft, Nvidia and Broadcom.