Goldman Says Tech Bull Market Has Room to Run

• Concentrated gains in 'Magnificent 7' tech stocks do not signal a market top, as year-to-date performance is comparable to the broader S&P 500.
• Hyperscaler CapEx growth, a key driver, peaked at 116% YoY in Q3 but is expected to decelerate to a still-strong 22% by Q4 2027.
• Earnings, not macroeconomic events or elections, are the ultimate determinant of market direction, and the earnings growth outlook for tech remains positive.

Goldman Sachs' Matt Weir believes the tech bull market is not over, despite recent concentrated gains in large tech stocks. He expects hyperscaler capital expenditure growth to decelerate from an unsustainable peak but remain robust, emphasizing that strong earnings growth will continue to drive the market, not macro events.