Artificial Intelligence (AI) Stocks Will Send the S&P 500 Higher, According to These Wall Street Strategists
The S 500 (SNPINDEX: ^GSPC) has rocketed 19% higher this year amid cooling inflation and better-than-expected corporate earnings. But some credit goes to recent breakthroughs in generative artificial intelligence (AI), a technology that uses simple prompts to create content and automate various business processes. Generative AI promises to bring a step-function improvement to labor productivity, and the implications on corporate profits have whipped Wall Street into a frenzy.
Several strategists have set lofty S 500 price targets to account for market sentiment and the potential benefits of AI. For instance, Goldman Sachs analyst David Kostin says the S 500 could climb another 9% to 4,975 this year. Yardeni Research president Ed Yardeni sees the index rising 18% to 5,400 by the end of next year. And Capital Economics strategist Thomas Mathews sees the S 500 soaring 42% to 6,500 by the end of 2025.
Those forecasts make a strong case for buying AI stocks, but investors should also consider hedging their bets with an S&P 500 index fund like the Vanguard S 500 ETF (NYSEMKT: VOO). Here's why.
Source Fool.com
