Wall Street's concern about an AI bubble may be premature, according to Evercore ISI's Julian Emanuel, who argues that the current artificial intelligence (AI) rally has “a long way to go.” In a recent client survey, 67% of respondents believe a bubble is forming in AI stocks, but Emanuel estimates only a 25% chance that the S&P 500 ($SPX) overshoots its 2026 target of 7,750 and reaches 9,000.
He draws parallels between today's AI adoption rate of 25% and the early internet in 1996, when markets continued rallying for years after Alan Greenspan's famous "irrational exuberance" warning.
