How AI is lifting the stock market

SP500

Key zone: 6,950 - 7,000

Buy: 7,050 (on strong positive fundamentals); target 7,200; StopLoss 7,000

Sell: 6,920(on a confident breakout of the 6,950 level); target 6,800; StopLoss 6,970

The U.S. stock market has set a new record: the S&P 500 index, which includes the 500 largest U.S. companies by market capitalization, has exceeded the 7000-point level for the first time. This fact was personally highlighted by Donald Trump on the social network Truth Social, where he stated that “America is back.”

After the speculative boom of 2023–2025, artificial intelligence has moved into a phase of large-scale practical implementation. The current rally is largely driven by expectations of sustainable profits for major technology corporations from AI-based products and services, which are actively used in manufacturing, logistics, the financial sector, and customer services.

The IMF also directly links its forecast for U.S. economic growth in 2026 to a wave of investments in artificial intelligence infrastructure.

Reminder:

Trump’s policy remains a key factor in market dynamics. Some sectors receive institutional support, while others slow down under the pressure of new restrictions. As a result, corporate success is increasingly determined not only by financial reporting, but also by alignment with the priorities of the White House administration.

Information interventions, regulatory initiatives, and political signals are quickly reflected in asset prices, making the political factor comparable in importance to fundamental analysis, although the effect is more concentrated.

The historical high of the S&P 500 coincided with the earnings season of the so-called “Magnificent Seven,” which account for about 37% of the index’s total capitalization. An additional driver is expectations of the end of the Federal Reserve’s monetary tightening cycle, although recent FOMC decisions do not yet confirm the regulator’s readiness to support this optimism.

Large investments in data centers, energy, and semiconductors have formed a long-term infrastructure cycle. Positive expectations around Tesla, Microsoft, Nvidia, and Alphabet are reinforced by upward revisions of profit forecasts across a broad range of companies within the index. For more targeted analysis, investors are increasingly shifting their focus from indices to individual stocks of equipment suppliers, data providers, automation firms, and applied AI solution developers.

• Among the strongest SaaS stocks by the end of 2025 are companies that managed to integrate AI into real business models: Palantir (PLTR, +145%), JFrog (FROG, +115%), AppLovin (APP, +104%), Unity (U, +84%).
• In the semiconductor segment, demand is growing for memory and storage manufacturers, including Micron (MU, +290%), Western Digital (WDC, +192.42%), Sandisk (SNDK, +434.8%).
• In pharmaceuticals and medical technologies, the most stable performance was shown by Regeneron (REGN, +67%), Johnson & Johnson (JNJ, +51%), Eli Lilly (LLY, +35%), Medtronic (MDT, +13%), Intuitive Surgical (ISRG, +24%).

Against this backdrop, the dollar fell to four-year lows last week, which Trump interprets as his own success, but the aftertaste of this “victory” is rather dangerous.

The update of the historical high in the S&P 500 reflects a structural shift in favor of artificial intelligence as a key source of corporate profits and U.S. economic growth.

Today, the main task of American business is to withstand the autocratic regime that Trump relies on in managing the U.S. economy.

Politics is becoming a full-fledged pricing factor in the stock market, while the main beneficiaries remain companies that are able to truly monetize AI through demand, contracts, and scalable business models, regardless of their formal capital size. The key is to remain minimally dependent on politics and on individual controversial personalities.

So we act wisely and avoid unnecessary risks.

Profits to y’all!