US equities held near record highs this week, but published research grew visibly more divided on whether the AI-led rally can keep going.
On the bull side, analysts pointed to Q1 earnings growth north of 20%, an AI capex cycle described as still early, and a reported 12-to-1 imbalance between data center demand and supply. Researchers flagged structural tailwinds for semiconductors, power generators, data center REITs and software — with one note arguing software could be the next short squeeze candidate. Defense names were tagged as a multi-year story tied to a potential $200B budget uplift, and large-cap tech names including Microsoft and Tesla drew fresh bullish price targets.
The bearish thread sharpened later in the week. Multiple independent analysts flagged equities as "frothy" and overbought, with technical work pointing to a possible S&P 500 double top breaking near 7,345 toward 7,150, and warnings that any sustained oil spike has historically preceded recession. One contrarian view framed the setup as the start of a "lost decade" for nominal returns.