Updated

Updated · Forbes · Jun 15

Wall Street Sees S&P 500 Gaining 5% More in 2026 as AI Boom Counters 4.2% Inflation

Updated

Updated · Forbes · Jun 15

Wall Street Sees S&P 500 Gaining 5% More in 2026 as AI Boom Counters 4.2% Inflation

Q: How will the AI-fueled memory chip crisis affect the price of your next phone or computer?

Your next phone or computer is likely to cost noticeably more, with the biggest increases hitting budget models and memory-heavy devices. The reason is simple: AI data centers are absorbing an unprecedented share of the world’s memory supply. Industry estimates say data centers will use about 70% of all memory chips made in 2026, up sharply from 20% to 30% in 2022. Samsung, SK Hynix and Micron have shifted most capacity toward high-bandwidth memory for AI servers because it earns far higher margins than standard DRAM and NAND used in phones and PCs. That has pushed up component costs fast. DRAM prices surged about 90% in the first quarter of 2026 and have roughly doubled since early 2025. Forecasts cited by Gartner point to memory prices rising 125% this year, with storage chips up even more. Those increases are now flowing into retail electronics prices. Research groups and company guidance suggest consumer devices could rise 10% to 20% by the end of 2026. Smartphone prices are expected to climb around 14% on average, while some PC makers have warned of hikes approaching 20%. Apple has already raised some MacBook Pro prices by as much as $400, and Intel has lifted CPU prices by more than 15%, adding to the squeeze. Consumers may also see fewer low-cost options, delayed launches, and weaker specifications, such as less RAM or storage at the same price. Analysts expect the shortage to last into 2027, with some executives warning meaningful relief may not come until 2028.

3 articles · Updated · Forbes · Jun 15

The S&P 500 is already up 7.7% in 2026 through June 9, and Wall Street strategists still project another 5% gain by year-end.
AI spending is the main support: Google, Amazon, Microsoft and Meta plan $725 billion in 2026 capex, up 77% from $410 billion, while AI-infrastructure names are driving roughly half of S&P 500 EPS growth.
That optimism faces rising macro pressure from 4.2% May inflation, 15% tariffs and oil shocks tied to the Iran war, with Brent having peaked at $114 a barrel and 2026 oil prices still up 37% by June 10.
Valuations are stretched — the Shiller CAPE reached 41.6 in May, second-highest in more than 140 years — leaving the market vulnerable if AI earnings disappoint or major IPOs such as SpaceX, OpenAI and Anthropic stumble.
Higher rates are the key risk because about $1.5 trillion of expected AI capex is set to be debt-financed, though strategists have historically undershot S&P 500 year-end returns in 13 of the past 16 years.

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Is the AI market a revolutionary boom or the biggest bubble since the dot-com crash?

How will the AI-fueled memory chip crisis affect the price of your next phone or computer?

S&P 500 at 7,500+: Navigating the AI Supercycle, Market Concentration, and Economic Risks in 2026

Overview

The S&P 500 reached 7,554.29 in June 2026, reflecting a strong 1.65% daily gain amid a robust market environment fueled by the ongoing AI supercycle. This growth is supported by solid fundamentals, with expectations that U.S. equities will deliver 8% to 12% returns in 2026. The outlook is constructive for long-term investors, as corporate earnings growth is set to expand beyond just mega-cap technology stocks. Supportive fiscal and monetary policies further strengthen the market, making the current environment attractive for investors seeking both stability and growth opportunities.

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