Nataliia Lipikhina, head of EMEA equity strategy at JPMorgan Private Bank, argues an earnings supercycle will push US stocks to fresh record highs. Heavy spending from hyperscalers and advances in agentic AI are fueling this expansion, with the strategist noting the current reporting period shows the S&P 500 tracking its strongest earnings growth in five years.

Lipikhina lifted JPMorgan's S&P target and projects 20% earnings growth in 2026, primarily driven by Big Tech. She described the recent run as "pretty phenomenal" with technology doing most of the heavy lifting. The upgraded outlook reflects confidence that this earnings expansion will prove more durable than typical economic cycles.

For diversification, Lipikhina suggests investors look beyond the popular AI trade toward underperforming sectors and regions. With Middle East uncertainty weighing on markets, she points to Europe and luxury stocks as potential winners should the Iran conflict find resolution. Regarding the wave of large IPOs expected this summer, she notes that even trillion-dollar offerings with 10% free float create only technical selling pressure, not fundamental instability. The market has sufficient capacity to absorb these events without disruption.

JPMorgan's analysis suggests investors should maintain confidence in the earnings trajectory while seeking opportunities in overlooked corners of global markets.