Canada TSX Index Forecast to Hit Record Highs on AI Demand
The S&P/TSX Composite Index is projected to reach 35,300 by the end of 2026 as analysts expect energy and commodity sectors to benefit from the power needs of artificial intelligence. While trade uncertainty and potential corrections pose risks, the index is forecast to climb further to 38,000 by late 2027.
Canada stocks are expected to reach record highs as artificial intelligence power demands drive energy sector gains. According to a Reuters poll of 25 strategists, the S&P/TSX Composite Index is projected to rise 1.9% to 35,300 by end-2026 and climb 9.7% to 38,000 by end-2027. Investors are weighing commodity-driven growth against trade risks involving the United States and Mexico.
### AI Infrastructure Fuels Energy Demand The energy sector, which represents 19% of the TSX weighting, has climbed more than 40% this year. This surge followed a rise in Brent Crude Oil prices linked to conflict in Iran. AIP Asset Management senior portfolio manager Jay Bala said the next phase of AI competition depends on solving power and infrastructure challenges rather than just software development.
