Lates News

As companies pour money into AI infrastructure, US corporates are set for another blockbuster earnings season. Goldman Sachs expects S&P 500 companies to report 27% year-on-year earnings growth for the September quarter, driven by businesses at the heart of the AI infrastructure boom. Nothing in recent macroeconomic data and AI investment boom-related signals suggests investment is slowing, said Ben Snider, chief US equity strategist at Goldman Sachs. Manish Kabra, chief US equity strategist at Socit Gnrale, said this would mark the third consecutive quarter of earnings growth above 25%, an unprecedented streak outside the post-financial crisis recovery. Revenue is expected to rise 12%. Steve Chiavarone, chief investment officer of equities at Federated Hermes, said investors are witnessing the best earnings and margin growth in our lifetime thanks to AI infrastructure-related capital expenditure. The worries that people have built up... will ultimately be crushed by strong earnings performance, he added.