Federated Hermes CIO Sees Years Left in AI Boom Before Bubble Risks Rise

Steve Chiavarone, Federated Hermes’ chief investment officer for global equities, believes the AI infrastructure build-out has years to run before bubble risks intensify, citing spending on data centers, semiconductors and power. Federated Hermes raised its 2026 S&P 500 earnings estimate to $370 from $340 in its September outlook. It projected about 15% earnings growth in both 2027 and 2028, with estimates of $425 and $490, respectively. Those amounts are forecasts, not reported results. The outlook linked its 2026 earnings forecast to AI infrastructure investment and a resilient U.S. economy.

Source: TokenPost