AI to drive S&P 500 up 12% by year-end — Sanctuary Wealth

Mary Ann Bartels, chief investment strategist at Sanctuary Wealth, expects the rise of artificial intelligence (AI) to boost US corporate profits and push the S&P 500 to new record highs. 

She believes the tech sector will further drive the rally in the US stock market as AI, crypto, and robotics advance. In this regard, the S&P 500 could surge 12% to 7,000 by the end of 2025. 

The AI trade is still gaining momentum, with companies continuing to invest in networking, compute, and storage infrastructure, Bartels notes. 

The strategist expects American firms to report earnings above muted forecasts for the second quarter, stemming from Donald Trump’s erratic trade policies. Besides, she projects lower tariff rates in the coming months as negotiations go on. 

Bartels says companies with large market capitalizations are likely to continue outperforming. Yet, she believes financial and industrial stocks will rise faster as AI boosts profitability across all sectors of the economy.