Goldman Sachs 
GS expects U.S. companies to raise roughly $600 billion through equity issuance in 2027, extending a historic capital-raising boom that is being fueled in part by the enormous spending requirements of artificial intelligence infrastructure.
Strategist Ben Snider estimates companies will raise about $175 billion through IPOs next year, with another $425 billion coming from follow-on offerings, convertible securities and SPACs.
That would follow an even bigger 2026.
U.S. companies have already issued about $431 billion in equity this year, up 98% from the comparable period last year. Goldman expects full-year issuance to reach roughly $675 billion, surpassing the previous record of $540 billion set in 2021.
The flood of new stock creates an obvious challenge for investors: supply.
Goldman estimates around $1.7 trillion of shares could become eligible for sale in 2027 as lockup restrictions expire. Combined with new issuance, that could create the largest increase in publicly available U.S. equity supply since 2000.
But the bank does not think that supply will derail the bull market.
Goldman expects companies to repurchase roughly $1.7 trillion of their own shares in 2027, up from about $1.5 trillion this year. Including cash-funded acquisitions, total corporate demand for equities could exceed $2 trillion.
AI is playing a major role in the financing cycle.
AI-related follow-on offerings have raised around $65 billion this year, representing approximately 45% of total U.S. follow-on issuance.
Goldman expects Amazon, Alphabet, Meta, Microsoft and Oracle to spend roughly $1.2 trillion on capital expenditures in 2027, versus around $1.1 trillion in operating cash flow. Debt financing is expected to cover around 35% of that spending.
Investor Takeaway
I think the most important part of Goldman’s call is the scale of the push and pull between equity supply and equity demand.
On one side, IPOs, follow-on offerings and lockup expirations could put a huge amount of new stock into the market.
On the other, corporate buybacks, acquisitions, household purchases and foreign investor demand are all providing meaningful support.
Goldman therefore still expects the S&P 500 to rise, forecasting 11% EPS growth in 2027 to $415 and maintaining a 12-month target of 8,700, about 12% above the index’s Oct. 8 level.
The bigger risk may be valuation expansion.
With the median S&P 500 stock already 16% below its own record high while the index itself trades near a peak, leadership remains narrow.
For investors, I would watch IPO activity, buyback announcements, Treasury yields and whether earnings growth broadens beyond the largest AI-linked stocks.
If buybacks and earnings remain strong, $600 billion of new issuance may be absorbable. If rates stay high and market breadth weakens, the extra supply could become a much bigger headwind.
