Institution: S&P 500 Index May Rise Another 30%, But the Risk of a Sharp Drop Is Increasing

Glonghui, April 27 — According to a recent research report released by the independent investment research firm BCA Research, the artificial intelligence (AI) investment boom is gradually entering its late-stage cycle, with a rapid surge similar to the internet bubble era possibly just ahead. BCA had already warned of this AI melt-up risk in its 2026 outlook report and believes that this rally could push the U.S. stock market up as much as 30%, potentially driving the S&P 500 index past the 9,200-point mark. The so-called “melt-up” refers to a sharp market surge driven by sentiment and momentum rather than fundamentals, which is often the final frenzy before a crash.