- Goldman predicts significant S&P 500 growth by 2025.
- AI and disinflation are key drivers.
- US infrastructure funds add to growth potential.
Goldman Sachs’ target reflects a strong belief in AI’s transformative economic potential, coupled with structural disinflation benefits. Speculative purchasing hasn’t shifted crypto markets immediately.
Goldman Sachs, spearheaded by Chief US Equity Strategist David Kostin, has outlined a bullish target of 6,500 for the S&P 500 by 2025. Their outlook relies heavily on major AI adoption and structural disinflation. Although there have been no fresh public statements from the firm since July 2025, past communications have emphasized AI’s value for equity growth. “Generative AI is the most significant technological advance in decades,” said Bill Gates, Chair, Gates Foundation, highlighting the transformative potential of this technology (source).
The expectation primarily benefits large tech companies such as the “Magnificent Seven”, including Meta and Microsoft, foreseeing these entities outperform in the broader stock market. Recent US policy developments, like $500 billion in AI infrastructure spending under Project Stargate, further catalyzes growth. This initiative involves significant players like Oracle and Nvidia (Automation risks affecting job growth in selected occupations).
Cryptocurrency markets have not shown a clear correlation, given there’s no direct market shift documented from Goldman’s forecast or US AI spending. However, increased risk appetite could influence digital asset interest. The emphasis on AI investment might spark interest in tokens related to AI infrastructure, though no direct market movements have been observed.
Previous tech booms have seen marked rises in stock indices, and AI software revenue is poised to ascend by 580% by 2028. As regulations evolve, tech equities could see enhanced attention and allocation from institutional investors, increasing market depth and liquidity.
