Stock market hits record highs as AI enthusiasm boosts S&P 500
Updated
Updated · The Wall Street Journal · Apr 26
Stock market hits record highs as AI enthusiasm boosts S&P 500
10 articles · Updated · The Wall Street Journal · Apr 26
Data-center stocks like Nvidia surge amid expectations of major IPOs from Anthropic and OpenAI, despite $100-a-barrel oil and recent Middle East tensions.
Investors are betting on rapid data-center construction and future AI profits, driving demand for both established tech firms and startups labeled as AI-related.
Skepticism remains about a potential AI bubble, with parallels drawn to the dot-com era, but optimism persists that AI will transform the economy and deliver substantial long-term gains.
Is the AI boom building a revolutionary future or another dot-com bubble fueled by risky debt?
How can investors distinguish real AI innovators from companies just adding an 'AI' label for a stock boost?
Are off-balance-sheet deals hiding the true financial risks of the multi-trillion dollar AI investment boom?
With AI developers losing billions, who is truly profiting from the current AI goldrush?
Can the US power grid handle the energy surge from AI data centers without raising household electricity bills?
If top AI models are obsolete in five years, are we building trillions in infrastructure for the wrong technology?
AI-Linked Stocks Surge to 45% of S&P 500 Market Cap, Driving Record Market Highs in 2026
Overview
In April 2026, the S&P 500 hit record highs driven by AI-linked stocks, which now make up 45% of its market capitalization, up 20 percentage points since ChatGPT's 2022 launch. Semiconductor leaders like Intel and TSMC fueled this surge with strong earnings and robust AI chip demand, boosting Taiwan's stock market beyond the UK's valuation. Major tech companies and Alibaba are investing heavily in AI, further expanding the sector. Innovations like Anthropic's Mythos AI and resumed tech hiring have strengthened investor confidence, prompting JPMorgan to raise market targets. However, concerns about an AI bubble, massive capital spending, and geopolitical tensions pose risks, urging investors to adopt diversified, risk-aware strategies to navigate this transformative yet volatile landscape.