JPMorgan Asset Management sees an unusually strong global profit cycle, with corporate earnings expected to grow nearly 30% in 2026 and 20% in 2027, driven mainly by AI infrastructure spending. U.S. operating profits are now forecast to rise 27% this year, up from an initial 13% forecast, while companies outside AI and energy are expected to grow roughly 10% annually, and nearly 90% of S&P 500 companies are growing earnings. However, the market has largely priced in another strong year of AI investment in 2027, and funding this spending increasingly relies on debt as higher interest rates raise borrowing costs. JPMorgan remains constructive on AI but prefers higher-quality names, and says laggards from the momentum phase, such as software companies treated as “AI losers,” tend to perform very well.
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artificial intelligenceearningsAI investmentinterest ratesJPM
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JPM
▲ Likely positiveJPMorgan Chase
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Financials |
| Industry | Diversified Banks |
| Market cap | $913.3B |
| Close on 10/30/2026 | 337.11 |
| Change that session | -1.88% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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