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Goldman Sachs remains bullish on the S&P 500, even as turbulence among technology stocks tied to artificial intelligence shakes investor confidence. Strategist Ben Snider is keeping his 8,000 year end target for the benchmark index.

That forecast implies about 5% upside from the S&P 500’s current level of 7,659. The call signals that Goldman expects the market to finish the year on a positive note despite increasing pressure on some of its biggest technology winners.

Snider is also holding to an optimistic forecast beyond this year. He expects the S&P 500 to finish 2027 at 8,700, showing that the recent debate over a possible AI bubble has not displaced his bullish outlook.

Investors on X have been discussing the risk of an AI bubble bursting, but that concern is not evident in Snider’s published targets. His case instead centers on continued earnings growth, even as the pace of broader economic growth slows.

"Positive but decelerating growth has historically been associated with positive but moderating S&P 500 returns. Equity returns in these environments have historically been driven by earnings growth rather than by valuation expansion," Snider said.

That distinction is central to the Goldman forecast. Rather than relying on investors to pay increasingly expensive valuations, Snider’s outlook assumes corporate earnings will provide the primary force behind further market gains.

Snider is modeling 36% earnings growth for the S&P 500 this year. He expects that growth rate to cool sharply to 11% in 2027, leaving earnings higher but advancing at a considerably slower pace.

The bullish projection arrives as technology stocks associated with the AI boom face growing scrutiny. Those shares have played a key role in driving markets this year, making their recent weakness a significant test for investor sentiment.

The recurring concern is that revenue may fail to match the billions of dollars companies are investing in AI. Investors are especially worried about how that imbalance could affect businesses using massive amounts of debt to finance their AI spending.

Nvidia, a leading AI chip stock, lost more than $350 billion in market value last week. The Philadelphia Semiconductor Index also plunged more than 11%, reflecting broad pressure across the chip sector.

CoreWeave suffered an even steeper weekly decline. Shares of the neocloud company fell 25% as borrowing costs increased, adding to worries about AI companies that depend heavily on financing to fund expansion.

Bank of America analyst Tal Liani argued that CoreWeave’s stock decline reflected changing investor psychology rather than a deterioration in its underlying business. He made the comments on Sozzi Unleashed.

"This [move in CRWV] is more sentiment-driven. This is not about fundamentals," Liani said.

Liani also rejected the idea that the move showed CoreWeave could not meet its debt obligations. "This is not about them not being able to pay for the debt, et cetera."

He continued: "This is more sentiment-driven, and the sentiment needs to change. And what's going to happen is, as always, there's going to be a period of concern."

Liani said the company’s operating results would eventually return to the center of the debate. "And then the fundamentals will kick in, meaning revenues, revenue growth."

The clash between Goldman’s bullish index targets and the selloff in prominent AI names captures the market’s immediate tension. Snider expects earnings growth to carry the S&P 500 higher, while investors are questioning whether AI revenue can justify vast spending and debt.

For now, Goldman is not abandoning its forecast because of those concerns. The firm’s 8,000 target leaves room for a positive finish this year, followed by another advance to 8,700 by the end of 2027.

The outlook does anticipate moderation rather than uninterrupted acceleration. Earnings growth is projected to slow from 36% this year to 11% in 2027, while historical patterns cited by Snider point to positive but moderating stock returns.

Recent losses in Nvidia, semiconductor stocks, and CoreWeave have intensified scrutiny of the AI trade. Yet Goldman’s forecast continues to rest on earnings growth, not further valuation expansion, as the foundation for additional S&P 500 gains.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.