AI Investment Boom to Fuel Corporate Earnings Through 2027
Goldman Sachs predicts that the artificial intelligence (AI) investment boom will continue to drive corporate earnings through at least 2027. According to Goldman Chief Economist Jan Hatzius, S&P 500 earnings per share are on track to grow by 36% in 2026, with AI investment contributing significantly.
The boost from AI is expected to come mainly from private investment stakes and the windfall from AI investment, including margin expansion at semiconductor companies. Goldman expects this extraordinary pace to cool down in 2027, with S&P 500 earnings per share growth slowing to 11% as gains from private investments fade and AI spending moves closer to a peak.
However, Hatzius emphasized that an outright decline in AI spending is unlikely before 2028 or later. Goldman's U.S. equity strategists also expect AI infrastructure to contribute significantly to S&P 500 earnings growth, with estimates suggesting it will add around 15 percentage points in 2026 and 11 points in 2027.