Investing.com -- Societe Generale told clients in a note on Tuesday that U.S. earnings strength is broadening beyond technology, and it expects the S&P 500 to reach 8,000, urging investors to "buy the momentum dip."

Chief U.S. Equity Strategist Manish Kabra described "another stellar earnings season," with 6 of 10 firms having reported and only 9% missing estimates, "the lowest reading ever."

The firm pointed to a "boom" in beats and margins, with 86% of companies topping estimates and margins improving across 10 of 11 sectors, taking both S&P 500 and ex-tech margins to record highs.

SocGen said beats are still being rewarded despite a sharp mid-season momentum shift, outperforming the index by 0.2%, while misses underperformed.

Upgrades remain strong, at 15 for every 10 downgrades, led by tech, financials and industrials. The firm's 2026 EPS estimate has risen 2% to $335 since the season began.

On AI, SocGen said the "hard data" is accelerating, with the three big hyperscalers' cloud growth picking up, backlogs rising $300 billion and capex guidance up $150 billion. It flagged industrials for record margins and rising upgrades, with large-cap EPS growing 15% and small-cap growth reaching 30%.

Kabra added that EPS is broadening, calling record highs in the S&P 500 Equal Weight Index "a testament to this," with cycle drivers "still running hot."

While the firm noted market leverage is high and higher real yields cap re-rating, it said a reversal would require aggressive tightening and a yield-curve inversion, which is not its scenario. SocGen prefers the equal-weight index and sees the S&P 500 at 8,000.