In the first half of 2026, total share buybacks in the S&P 500 increased by 15% year-over-year. Corporate buyback authorizations reached $1.1 trillion, more than 20% higher than the same period last year. Corporates remain the most stable buyers in the US stock market, and their demand is accelerating. Investors have been concerned that overall corporate demand will slow significantly this year and beyond as hyperscale manufacturers' capital expenditures surge.
The strong buyback growth in AI infrastructure stocks has not only offset the decline in hyperscale manufacturer buybacks, but corporate buybacks are expected to continue to grow next year. For example, Nvidia recently increased its buyback program by $150 billion, reaching $235 billion. We expect total US corporate buybacks to reach $1.7 trillion in 2027, up from $1.5 trillion this year. The increasing volume of cash acquisitions will also fuel demand for corporate-level stocks.
I believe the S&P 500 is poised to break through 8,000 points in the short term: strong corporate demand, pessimistic investor sentiment, low net exposure of hedge funds, the potential opportunities presented by mega-IPOs and their ability to ignite retail investor enthusiasm, coupled with another strong earnings season kicking off this week (macroeconomics can finally take a backseat).
(The above content is from Goldman Sachs' views on October 11th and is for reference only.)
