'I don't see a bubble': Why Wall Street thinks the stock market can keep climbing even as AI anxiety grows

Market Overview - The S&P 500 is projected to close the year with a gain of over 17%, driven by a 26% increase in technology stocks [1] - Current market conditions are compared to historical bubbles, with expectations of a potential bubble forming by 2029-2030 [2] Technology Sector Insights - The technology sector is expected to continue leading market growth, with projections for the S&P 500 to reach between 10,000 and 13,000 by 2030 [2] - Significant upside is anticipated in the semiconductor sector, with Nvidia emerging as a key player, having increased over 40% this year and reaching a market cap of $4.6 trillion [3] Notable Deals and Developments - Nvidia announced a $20 billion licensing deal with Groq, highlighting the competitive landscape in the chip industry [3] - Alphabet's Google has also made strides with its specialized chips, contributing to a 65% increase in its stock year to date [4] Earnings and Valuation - Forward price-to-earnings multiples are only slightly higher than at the beginning of the year, indicating that earnings growth, rather than valuation bubbles, is driving market gains [5] - UBS forecasts a 10% year-over-year growth in S&P 500 earnings per share, projecting the index to reach 7,700 by the end of next year [5] Future Projections - Veteran strategist Ed Yardeni predicts the S&P 500 will also reach 7,700 next year, supported by tax benefits and the AI boom [6] - Goldman Sachs analysts argue that the stock market is not in a bubble, attributing the rise in tech stocks to actual growth rather than speculative investments [7]