By Sharecafe Team
Publication Date: 2026-05-11 00:27:00
Stock markets are currently experiencing a strong rally driven by a single idea: the urgent need to invest in artificial intelligence (AI) infrastructure. Nick Ferres, chief investment officer of Vantage Point Asset Management, calls this “quick computing,” where the seemingly endless demand for AI capacity overshadows other investment considerations and leads to market euphoria. That sentiment recently pushed the S&P 500 to a record high, even as geopolitical tensions pushed Brent crude above $100 a barrel, signaling a potentially worsening energy shock.
Investors justify this optimistic outlook with robust profit forecasts. US market strategist Ed Yardeni explains this with his “Buzz Lightyear theory” – analysts predict profits “to infinity and beyond”. The S&P 500 has risen 16.1 percent since the end of March, with estimates for calendar-year earnings growth rising to 21.4 percent. This exceeds the peak of 18.6 percent during the dot-com bubble in 2000, a…