What bubble? The record revenues of several American companies have solid foundations. They are supported by the healthy growth of the U.S. economy and expectations that this magical moment will continue. Speaking is Ben Snider—a Goldman Sachs strategist—who is taking a position that may be contrarian compared with that of many colleagues and social media analysts.

The markets are therefore not overdoing it. Despite the Nasdaq setting record after record and all the other indexes continuing their rally, there would be solid foundations behind this optimism. At least according to Goldman Sachs. The firm is not talking about perpetual growth, however, but rather a gradual decline in revenues—not the bursting of a bubble, as… many expect.

Snider is skeptical too, but not about a bubble

It is important to be measured, especially when analyzing complex arguments from strategists and investors at the top of Wall Street’s food chain. Snider is convinced, on the one hand, that there is no sign of a bubble, but also that companies’ consistently rising revenues are being driven by an investment cycle that is unsustainable over the medium and long term.

Market prices incorporate forecasts of continued revenue growth, but also healthy skepticism about the sustainability of the current level of profits.

Market prices incorporate forecasts of continued revenue growth, but also healthy skepticism about the sustainability of the current level of profits.

Therefore, the market would not be overdoing it—at least for now. This is true even though the calculations being made are based on expected revenue growth—at least for 2026—and even though many continue to talk about a cycle whose growth is so explosive that it could end only with the dramatic bursting of a bubble.

Goldman forecasts—as reported by Bloomberg—an 11% increase in revenues next year, a forecast that the newspaper describes as cautious, at least compared with those circulated by other sources in recent months. The group also sees growth slowing, but remaining at fairly high levels.

2027: a key year

That is because it will see a reduction in the magical effect of investment in the AI sector, even though capital expenditure will continue to increase. According to Bloomberg’s report, attributing the assessment to Snider’s note, companies in the semiconductor and memory sectors will see their profits decline.

In any case, this is not a bearish forecast for the markets. According to Goldman Sachs, the S&P 500 will reach 8,700, representing growth of approximately 15% from current prices. So, there will be a reduction—but in growth, not in revenues as such. In other words, it is the derivative that is too steep, and it could flatten somewhat while the markets continue to grow strongly.