AI Profit Forecasts Raise the Bar for Wall Street

Wall Street’s rally is being supported by surging profit expectations, but the bar is getting higher as investors count on continued strength from AI infrastructure spending, chip demand, and the companies powering the data center boom.Paul Lane and Marc Fandetti break down why earnings forecasts have climbed so sharply, how memory chipmakers like Micron and SanDisk became major drivers of the market’s gains, and why elevated valuations leave less room for disappointment. They also discuss why history shows the biggest stock market winners are hard to identify in advance, how private credit investors are responding after recent turmoil, why more young adults are moving back home with parents, and why some investors are trying to keep SpaceX out of their portfolios after its Nasdaq 100 inclusion.