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Bloomberg Predicts 25% S&P Profit Surge, Burry Flags Chip Bubble

7/5/2026

Summary

Story summary

Bloomberg forecasts a 25% profit rise for S&P 500 firms in 2027, sparking bubble fears.
Consensus estimates have jumped almost 20% in six months, prompting GMO’s Ben Inker to warn that higher infrastructure costs and weak AI demand could derail forecasts.
Investor Michael Burry added positions in Tesla, Applied Materials, Caterpillar, SOXX ETF, Nvidia and Palantir, claiming chip depreciation of $176 billion through 2028 is understated and Meta earnings are inflated by 20.8%.

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Story summary

Bloomberg forecasts a 25% profit rise for S&P 500 firms in 2027, sparking bubble fears.
Consensus estimates have jumped almost 20% in six months, prompting GMO’s Ben Inker to warn that higher infrastructure costs and weak AI demand could derail forecasts.
Investor Michael Burry added positions in Tesla, Applied Materials, Caterpillar, SOXX ETF, Nvidia and Palantir, claiming chip depreciation of $176 billion through 2028 is understated and Meta earnings are inflated by 20.8%.