Yardeni Lifts S&P 500 Target to 8,250 as Burry Warns Nasdaq 100 Faces 43x-Earnings Crash
Updated
Updated · The Motley Fool · May 14
Yardeni Lifts S&P 500 Target to 8,250 as Burry Warns Nasdaq 100 Faces 43x-Earnings Crash
3 articles · Updated · The Motley Fool · May 14
8,250 is Ed Yardeni’s new year-end S&P 500 target, up from 7,700, making it the highest call on Wall Street with the index trading around 7,500.
330 in 2026 S&P 500 earnings per share and 375 in 2027 underpin the upgrade, as Yardeni says earnings growth is accelerating and the economy remains resilient despite war-driven oil spikes above $100.
43 times earnings is Michael Burry’s effective valuation for the Nasdaq 100, versus roughly 30 times by Wall Street, after adjusting for what he says are distorted AI-company profits and depreciation practices.
Burry called the AI-driven rally a 'bloody car crash' waiting to happen, arguing that even if the advance lasts weeks or months, it is likely to end in much lower prices.
The split view captures the market’s central tension: an earnings-led melt-up since the pandemic versus fears that AI exuberance and rich valuations could replay a dot-com-style unwind.
AI's trillion-dollar debt fuels a market boom. What happens when this spending spree faces a reality check on its actual returns?
The AI boom demands impossible amounts of energy. Will the power grid be the unexpected force that pops this market bubble?