AI Spending Is Expanding S&P Earnings
If AI investment stays near the current pace, S&P 500 earnings can reach about 380 dollars per share next year.
Analysts now expect roughly 380 dollars of S&P 500 earnings next year on strong AI-related investment, and that number is credible if spending holds. Mega-caps are taking on large amounts of debt instead of issuing shares, which signals confidence in future cash flows. Google is the rare issuer, with Berkshire buying about 10 billion dollars of an 80 billion dollar offering at roughly a 6 percent discount, and the stock has already lifted from post-earnings support. E-mini support is still holding, so a violent break is not the base case unless that level fails.
| Instrument | Side | Target | Reason |
|---|---|---|---|
| GOOGL | Long | Google is a rare mega-cap share issuer, yet Berkshire bought about 10 billion dollars of the latest offering at a discount and the stock is holding the post-earnings support that marked the start of a roughly 20 percent advance. |
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