The stock market is experiencing a technological revolution akin to the dot-com era, but Evercore ISI’s Julian Emanuel sees the AI bull market as a positive structural shift lifting stocks and society to new highs. He predicts a rally lasting through 2026, with a year-end S&P 500 target of 7,750.

Emanuel believes that the AI revolution, bigger than the internet, will continue to drive market gains, with utilities and industrials participating in the bull market alongside tech. He predicts that the Federal Reserve’s support will persist through 2026, potentially pushing the S&P 500 to 9,000 if the economy is overstimulated.

Despite expectations for a near-term pullback, Emanuel advises investors to see any dips as buying opportunities, as the market experiences a period of ‘rational exuberance’ before a potential bubble. With the Cboe Volatility index low, he suggests using put options as a hedge against short-term reversals in stock prices.

Read more at finance.yahoo.com: This ‘twice in a lifetime’ opportunity means the S&P 500 can hit 7,750 by end of next year