Panmure Liberum Cuts S&P 500 End-2027 Target to 5,000 Over AI Bubble Risks

Panmure Liberum strategist Joachim Klement cut his end-2027 S&P 500 target to 5,000 points from 8,300, warning of a potential 36% decline from its recent close of 7,801.77. Klement projects an artificial intelligence bubble burst by 2027 or 2028, citing an AI-financing squeeze as hyperscaler data-center capital expenditures reach an estimated $713 billion in 2026 amid depleted free cash flows and rising borrowing costs. The call positions Klement as a Wall Street outlier, with institutions like Jefferies and Citigroup forecasting the benchmark between 8,000 and 9,000.