Goldman Sachs is betting on the continued performance of US stocks in the long bull market! The style switch from cycles to AI leaders is about to happen.

Chief US stock strategist Ben Snider from Wall Street financial giant Goldman Sachs said in an interview that despite high uncertainty in the financial markets, the trends of the S&P 500 index and broader US stock market indices in the next 6 to 12 months are still very healthy. During a media interview on Tuesday local time, Snider emphasized that while investors are grappling with a new round of global geopolitical tensions, the fundamental profit growth trends in global stock markets, including US stocks, remain intact. He advised a strategic shift from cyclical stocks to AI super leaders. In addition, despite the continuous growth of the private equity market, Snider believes that the liquidity and depth of the US public stock market remain unmatched globally. He stated that given the possibility of several large IPOs this year, investors "should not rush to dismiss the public stock market." Goldman Sachs strategists seem to be shifting their investment focus from "chasing cyclicality" to "returning to high-quality leaders, especially those benefiting from AI capital expenditure and AI commercialization prospects," but this is not simply abandoning cyclical stocks, but rather a phase of style rebalancing. Goldman Sachs believes that in the current stage, it is better to prioritize quality leaders that can withstand volatility while still enjoying profit upgrades. In addition to Goldman Sachs, Chief Stock Market Strategist Mike Wilson from Morgan Stanley is also bullish on the medium to long-term bull market in US stocks, just like Snider from Goldman Sachs. They both firmly believe that the next 6 to 12 months are still in the profit expansion and mid-to-late stage of the long-term bull market. Furthermore, top Wall Street strategists from Barclays, JPMorgan Chase, Oppenheimer, and Deutsche Bank also emphasized that while short-term volatility may not be over yet, they tend to agree that the logic of a long-term bull market in US stocks is still strong. Barclays even emphasized that the US stock market is giving off the strongest buying signal in nearly a year, and the worst phase of recent sell-offs may be over. These Wall Street financial giants generally emphasize that strong profit growth trends in the US stock market, inflows from retail investors, volatility resets, and seasonal positives will play important roles in supporting the long-term bull market in US stocks. Goldman Sachs touted the long-term trend of the S&P 500 index as "very healthy" and recommended a shift from cyclical stocks to "AI super leaders." "Obviously, the current uncertainty is very high," Snider said. "But if we look ahead 6 months, 12 months, the profit growth trajectory of the S&P 500 index and the broader US stock market still look very healthy." The top Wall Street strategist pointed out that the significant opportunities window surrounding certain cyclical trading themes, which performed well since the end of last year, is closing. Although sectors such as consumer discretionary and industrial sub-sectors experienced accelerated trends from October to January, Snider believes that investors should now shift their focus elsewhere. "We believe that these cyclical trading themes, especially those, are entering the final stages," he said in the interview. Snider suggested that investors should shift from cyclical stocks, small-cap stocks, and low-quality high-beta stocks to large tech companies with more stable fundamentals that benefit from the AI wave, as well as leaders in AI computing power. He recommended moving towards those tech companies that have a "stronger balance sheet, higher profit margins" which benefit from AI investment themes. He pointed out that while low-quality high-beta stocks have performed well in the recent months of volatile trading due to opportunities arising from technical trading aspects, the current market environment favors holdings with strong fundamentals. Snider emphasized that large tech giants and leaders in the global AI computing power industry chain, including TSMC, Broadcom, Micron, Ansys, Lumentum, are still attractive investment subsets benefiting from the AI investment craze. He noted that the increasingly strong global AI capital expenditure is one of the main driving factors. He said, "The hot investment theme of AI capital expenditure (AI CapEx story) has been one of the most highly confident and sustained trading themes for investors in recent years." He repeatedly mentioned that AI-related spending forecasts have been significantly raised, which will benefit companies profiting from these investments in the long term. The S&P 500 index has risen by approximately $30 trillion in the past three years in a "super bull market trend," largely driven by the world's largest tech giants (the seven major tech giants in the US) and also significantly driven by chip companies such as Micron, TSMC, and Broadcom that have greatly benefited from massive global AI computing power infrastructure investments, as well as the three storage giants (SanDisk, Western Digital, Seagate) and power system providers (such as Constellation Energy). According to Wall Street giants Morgan Stanley, Citigroup, Loop Capital, and Wedbush, the global AI infrastructure investment trend centered around AI computing power hardware is far from over and is just beginning. Under the unprecedented "AI reasoning end computing power demand storm," this round of global AI infrastructure investment is expected to amount to $3 trillion to $4 trillion by 2030. With the exponential expansion of model scale, reasoning pathways, and multimodal/agentive AI workloads, the main capital expenditure focus of tech giants is increasingly shifting towards AI computing power infrastructure. Global investors are increasingly anchoring the "AI bull market narrative" around expectations of new product iterations and AI computing power cluster deliveries from companies such as NVIDIA, Google TPU clusters, and AMD, making it one of the most certain storylines in the global stock market. This also means that investment themes closely related to AI training/inference, such as electricity, liquid cooling systems, and optical interconnect supply chains, will continue to be among the hottest investment camps in the stock market alongside key AI computing power leaders like NVIDIA, AMD, Broadcom, TSMC, and Micron, even in the face of geopolitical uncertainty in the Middle East. NVIDIA CEO Jensen Huang presented NVIDIA's unprecedented AI computing power infrastructure grand plan at the GTC conference in the early hours of March 17 Beijing time, informing global investors that with the strong demand for AI computing power from the Blackwell architecture GPU and the upcoming Vera Rubin architecture AI computing system's explosive demand underpinnings, the company's future revenue in the AI chip sector could reach at least $1 trillion by 2027 (from 2025 to 2027), far exceeding the blueprint of $500 billion for AI computing power infrastructure up to 2026 presented at the previous GTC conference. More and more top Wall Street strategists are bullish on the US stock market's long-term bull market. Alex Altmann, global stock tactical strategy director at Barclays Bank, stated in a research report on Tuesday that his long-term tracked stock timing indicator (BETI) fell to -8.3 overnight, marking the lowest level since the Trump tariff tensions in April last year. This indicator reached a historically significant entry point that indicated stocks were "highly attractive." Thus, he chose to join the increasingly optimistic camp on Wall Street, believing that the worst phase of recent sell-offs may be over. The BETI indicator integrates 19 input variables such as market internal structure, positions, sentiment, and macroeconomic data, aiming to identify tactical turning points in the stock market. Historical data shows that when this indicator is above +7, future returns tend to be poor; when it falls below -7, it corresponds to a favorable environment for a stock market rebound. Barclays data shows that since 2015, when this indicator falls in the -8 to -7 range, the S&P 500 index has had an average return of 6.6% over the following 42 days, with a high success rate of 92%; based on 38 observation samples, the median return rate during the same period is 5.1%.