JPMorgan raised its 2026 year-end S&P 500 target to 8,000 from 7,800.
Strong second-quarter earnings and evidence of AI revenue growth drove the revision. Strategists noted that major tech companies are successfully monetizing artificial intelligence investments.
The bank increased its S&P 500 earnings-per-share estimate to $365 for 2026. It also raised the 2027 earnings-per-share forecast to $420.
JPMorgan maintained its forward valuation multiple despite the bullish outlook. Higher interest rates and geopolitical uncertainty remain primary risks to the forecast.