Goldman Sachs raised its S&P 500 projection to 8,000 points by the end of 2026, with EPS of $340, a 24% increase for the year. For 2027, it projects $385.

The key detail is the composition: about half of the index's profit growth this year comes from beneficiaries of AI infrastructure investment.

In other words, the S&P 500 is expensive but with strong profit growth, and this growth is concentrated in a single theme.

This thesis supports the index as long as the AI capex cycle continues.

If it slows down, half of the profit engine slows down as well.

Incredible...