LIVE MARKETS- AI's $40 trillion roadmap: build it, sell it, use it

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AI'S $40 TRILLION ROADMAP: BUILD IT, SELL IT, USE IT

Wall Street's AI trade is growing up.

After nearly three years dominated by chipmakers, cloud giants and data center builders, Societe Generale argues the next phase of the artificial intelligence boom is broadening far beyond Big Tech. The brokerage's latest US equity outlook frames the market through a simple lens. Build AI, Sell AI and Use AI. Together, those three themes represent more than $40 trillion in market value, or roughly 60% of the S&P 500.

The call comes as SG reiterates its 8,000 target for the S&P 500 .SPX, while lifting its 2026 earnings-per-share forecast to $360 from $333, reflecting stronger profit growth across both technology and non-technology sectors.

At the heart of the thesis is a tug-of-war between two powerful forces, a roughly $40 trillion AI opportunity driving productivity and profits, and a $40 trillion U.S. debt burden keeping pressure on bond yields and market valuations. SG's view is that investors remain overly focused on macro risks while underestimating the strength of corporate earnings and productivity gains.

To capture the next leg of the AI cycle, the bank has created three thematic baskets. The "Build AI" basket targets infrastructure beneficiaries such as semiconductor, networking, power and data-center companies. The "Sell AI" basket focuses on firms directly monetizing AI through software, cloud services and automation. The final phase, "Use AI," identifies companies harnessing AI to boost efficiency, lower costs and improve profitability.

(Rashika Singh)

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