Wall Street veteran Ed Yardeni has dubbed the current market the “Buzz Lightyear” rally, arguing AI compute demand will scale “to infinity and beyond.”
Polymarket traders mostly agree.
Yardeni’s framework, cited by hosts on Sunday’s episode of WSJ’s “Take On The Week” podcast, says runaway AI capex will pull S&P 500 (NYSE:SPY) earnings higher with it. The thesis runs through Nvidia (NASDAQ:NVDA) and the wider chip complex, which has anchored the year’s gains.
Why Yardeni’s Math Matters
Long-term analyst expectations for S&P 500 earnings growth have climbed above 20%, according to Yardeni.
That figure may sit higher than the level reached at the 2000 dot-com peak.
Past readings at those levels have historically preceded sharp drawdowns, though bulls argue this cycle is anchored on real hyperscaler capex rather than profitless tech narratives.
The rally is not as narrow as it looks. Morgan Stanley analysts said the median S&P 500 company beat first-quarter earnings estimates by 6%, the strongest …
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