Goldman Sachs Predicts Broader S&P 500 Growth by 2025

Goldman Sachs joined Morgan Stanley to project significant profits for the Slamp; P 500 at the end of 2025. In a report released on Tuesday, Goldman’s Equity Strategy, David Kostin, predicted that the index would increase by 11% to 6.500, highlighting a more diversified market performance beyond the “Seven Magnificent” technological actions domain. The forecast is closely aligned with Morgan Stanley’s estimate and indicates a shift towards a broader contribution from various sectors.

The ”Magnificent Seven”, a group of technology giants including Apple, Microsoft and Nvidia, led the S sentientamp; P 500 in recent years, with remarkable performances compared to the rest of the index. Goldman expects this area to leave by 2025. Although these companies exceeded 22 percentage points in 2025, the margin is expected to be reduced to only 7 percentage points by 2025. A similar trend is expected for the growth of income per share (SPE), with a drop from 30 percentage points in 2024 to only 6 points next year.

Kostin and his team expect economic stability, strong revenue growth and moderate bond yields to support market expansion. Risks such as limited reductions in Federal Reserve interest rates and potential commercial tariffs remain, but the overall outlook for US action remains abusive. In particular, Goldman predicts a pivot in AI-related growth, with profits from hardware leaders like Nvidia to companies that use AI to boost revenue, such as Apple and Meta.

Other strategies, including BMO Capital Markets, have the same optimism. BMO forecasts an increase of 13.7% for plagaamp S; from 500 percent to 6,700 percent. Brian Belski warns, however, that the rapid progress of recent years can be standardized, leading to a more balanced market performance. The company underlines the importance of diversification, recommending exposure to the technological and financial sectors, as well as selective discretionary consumer stocks.

The forecasts show a wider trend towards diversification within the Slamp; P 500, identifying opportunities for investors in various sectors. If the “Magnificent Seven” can retain its leadership in certain areas, its small field could lead to a new era of market dynamics. Investors are advised to take a balanced approach to take advantage of new opportunities and sustained growth in traditional sectors.

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