Despite the AI stock plunge, S&P 500 year-end forecast of 8000… "Investment discipline extends the growth cycle"

Wellington Altus Private Wealth chief market strategist Jim Thorne maintained his S&P 500 year-end target of 8,000 despite the recent selloff in Nasdaq and AI-linked stocks, characterizing the drop as hedge funds unwinding overly crowded positions rather than the end of the growth cycle. He argued that greater discipline in AI capital spending would extend the investment cycle and push gains beyond AI infrastructure into application companies and economically sensitive sectors. Thorne said the market is in a bottoming process and that short-term volatility should not be read as the trend ending, with his outlook extending into 2027. The call matters because it frames the AI-led drawdown as a positioning flush rather than a fundamental break, keeping the bull case intact for now. What to watch next is whether AI capex discipline materializes and whether leadership broadens as Thorne expects.