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Goldman Sachs Expects $600 Billion in U.S. Equity Issuance for 2027 as AI Demand Soars

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GS$893.95 −0.15%SPX7,807.24 −0.06%

Goldman Sachs Group, Inc. (NYSE:GS) projects that U.S. corporations will raise roughly $600 billion through stock sales in 2027, extending a historic surge in corporate fundraising. Strategists estimate that initial public offerings will account for about $175 billion, while follow-on offerings, convertible securities, and SPACs will contribute $425 billion. Massive spending on artificial intelligence infrastructure is driving much of this financing demand, with AI-related follow-ons already totaling $65 billion this year.

The expected surge in new issuance, combined with roughly $1.7 trillion in shares becoming eligible for sale as lockup periods end, represents the largest potential increase in publicly available stock supply since 2000. Despite this flood of supply, corporate demand remains strong. Company buybacks are expected to reach $1.7 trillion in 2027, up from $1.5 trillion in 2026, pushing total corporate equity demand past $2 trillion when including cash acquisitions.

Investors should monitor upcoming IPO volume, buyback announcements, Treasury yields, and whether corporate profit growth broadens beyond megacap tech firms. Goldman Sachs forecasts that S&P 500 (SP:SPX) earnings per share will grow 11% in 2027 to $415, maintaining a 12-month index target of 8,700 even as median stock valuations lag near-record index peaks.

Key points

  • Goldman Sachs Group, Inc. (NYSE:GS) projects U.S. companies will raise around $600 billion in equity issuance in 2027.
  • Full-year 2026 U.S. equity issuance is expected to reach a record $675 billion, topping the 2021 peak of $540 billion.
  • AI infrastructure spending is driving capital needs, with AI follow-on offerings accounting for 45% of U.S. follow-ons this year.
  • Corporate buybacks are projected to rise to $1.7 trillion in 2027, helping absorb $1.7 trillion in expiring share lockups.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

How much stock will U.S. companies issue in 2027?

U.S. companies are expected to raise about $600 billion through equity issuance in 2027, including $175 billion from IPOs and $425 billion from follow-on offerings, convertibles, and SPACs.

How is AI driving corporate stock sales?

Artificial intelligence infrastructure requires significant capital, leading AI-related follow-on offerings to raise around $65 billion this year, or 45% of total U.S. follow-on stock issuance.

Will new stock supply weigh on the market in 2027?

While new equity issuance and $1.7 trillion in lockup expirations will create substantial stock supply, Goldman Sachs projects corporate share buybacks of $1.7 trillion will help absorb the new shares.