Despite a robust 15% surge in the S&P 500 Index since the beginning of the year, the firm's strategists believe the market will maintain its "buy-the-dip" behavior, with further growth anticipated as the next Federal Reserve rate-cutting cycle approaches.

The strategists forecast a slight downside risk to the S&P 500 in the third quarter, which could be influenced by volatility surrounding the elections.

They noted that the S&P 500 is at a "critical juncture," with the narrow scope of this year's gains potentially signaling either a bear market or a stock-market "bubble."

However, the brokerage firm clarified that neither scenario is expected by the firm, underscoring this point in a recent note to clients.

Societe Generale also identified an upside risk for stocks, suggesting that the current boom in artificial intelligence could mirror the dot-com bubble, potentially propelling the S&P 500 to as high as 6,666.

On the downside, the strategists warned of a risk if U.S. weekly jobless claims surpass 300,000, which could happen if profit margins for small firms deteriorate.

Looking beyond technology, the strategists at Societe Generale highlighted cyclical opportunities in other sectors such as industrials and financials.