AI bubble or not AI bubble…That has been the question throughout 2025. Even though some analysts see it as something real, they are not afraid of it because there persists a Wall Street’s growth potential in the coming years with a gain of more than 17% by the end of the year S&P 500 driven by an increase in 26% of the tech stocksaccording to Ines Ferré on Yahoo Finance.
«I don’t see a bubble at all. However, I think we are going to enter a bubble,» he declared last week. Mary Ann Bartels, Chief Investment Strategist at Sanctuary Wealtha Yahoo Finance.
Batels compared the current market to previous bubbles, including the late 1920s and the dot-com bubble.
«We’re following a pretty similar pattern. In fact, it’s a little disturbing how we’re following that pattern,» Bartels said. “I see a bubble forming, but it won’t go away until maybe the 29th or 30th.”
But for now, Sanctuary strategists predict that technology will continue to lead the market upwards until the end of the decade. They calculate that the S&P 500 will be located between 10,000 and 13,000 points by 2030.
“That’s why we forecast 2026, to be brave, as there is still significant upside potential in this market, especially in the technology market,” Bartels said.
Part of the upside potential comes from semiconductor stocks. Once considered commodity stocks, they have become growth stocks, with NVIDIA “basically redefining the direction of semiconductor chips.”
The power of AI chips has risen more than 40% so far this year, raising its market capitalization to 4.6 billion dollars and making it the most valuable company listed on the stock market. On Friday, Nvidia shares rose after the announcement of a licensing deal for 20 billion dollars with specialized chip manufacturer Grok.
The deal was announced at a time when the chip sector is booming, with Alphabet-A making headlines with its specialized customer chips, called TPU.
Alphabet shares have soared 65% so far this year.
Los strategists of UBS Group N They also forecast the rise of AI and strong profit growth to drive market gains in 2026.
«We note that forward price-earnings multiples are only slightly higher than at the beginning of the year, reinforcing the fact that earnings growth, not valuation bubbles, has driven market gains,» the strategists wrote last week.
UBS expects S&P 500 earnings per share to grow by about 10% interannualwhich will push the index up to 7,700 points at the end of next year.
He Veteran strategist Ed Yardeni also expects the index to reach 7,700 points next year, with a probability of 60% in its «A spectacular 2020» scenario. He cited, among other reasons, the tax benefits of «Great Law» approved this year and the rise of AI.
In October, the analysts Goldman Sachs Gr They argued that the stock market It’s not in a bubble.as tech stocks have risen primarily due to real growth, not speculative bets. The firm noted that the best performing companies have strong balance sheets and that the AI sector is still mainly led by a few large companies, while most bubbles occur when many new entrants jump into a booming sector.
While most of the earnings growth this year has been led by the seven largest stocks in the S&P 500, analysts at Goldman Sachs also expect participation to widen.
«We expect favorable macroeconomic factors stemming from accelerating economic growth and declining tariff impact on margins to drive an acceleration in the earnings growth rate of the remaining 493 stocks,» he wrote Ben Snider of Goldman Sachs earlier this month.
“Meanwhile, AI productivity is expected to boost profits for companies outside the Magnificent Seven,” he said. Joseph Shaposhnik, fundador de Rainwater Equity.
«I think some will take a break; others will do well,» Shaposhnik told Yahoo Finance.
«But in reality, the opportunity for extraordinary returns next year will be outside of those seven companies,» Shaposhnik added.