Evercore’s Emanuel: AI Bull Market Has More to Run
Comparisons between today’s rally and the late ’90s often come with bubble warnings. But Evercore ISI’s chief equity strategist Julian Emanuel takes a more optimistic view: this is a structural, tech-driven bull market with much further to go.
Emanuel calls it a “technological revolution” — one that is propelling stocks, valuations, and society itself to new highs. While the dot-com era defined the turn of the millennium, today’s bull run is being driven by artificial intelligence.
And unlike the narrow gains of the late ’90s, this cycle has seen broad participation, from tech to utilities powering AI data centers to industrials building out infrastructure.
Evercore’s outlook:
- S&P 500: 6,250 by end-2025 (raised from 5,600).
- S&P 500: 7,750 by end-2026, on 27x EPS of $287.
- In an overheated scenario, the index could stretch to 9,000 by 2026.
Emanuel stresses that AI’s impact is “bigger than the internet” in just three years, with adoption only beginning to accelerate. A supportive Federal Reserve—unlikely to raise rates before the 2026 midterms—adds another tailwind.
Still, near-term volatility is expected. Emanuel advises hedging with cheap options and using dips as buying opportunities.
His bottom line: before any bubble risk emerges, this market still has a phase of “rational exuberance” ahead—something every major bull run has experienced, but this one has not… yet.