JP Morgan ups year-end target for S&P 500
The brokerage lifted its earnings forecasts and said 85.1% of 436 S&P 500 companies beat analyst expectations, according to LSEG data.
- On Monday, Morgan raised its year-end target for the S&P 500 index to 8,000 from 7,800, citing solid corporate earnings and confidence that AI-driven investments would drive faster revenue growth.
- Strong June-quarter results drove the optimism, with 85.1% of 436 companies beating analyst expectations, significantly outperforming the 68% long-term average since 1994, according to LSEG data.
- Analysts revised earnings-per-share forecasts to $365 for 2026 and $420 for 2027, noting that cloud growth at Google, Amazon, and Microsoft eased investor concerns regarding returns on spending.
- "As elevated backlogs convert into recognised revenue, cloud growth should remain well supported, helping validate rising AI capex, strengthen order coverage, and further ease ROIC concerns," Morgan analysts said.
- Despite the earnings backdrop, the brokerage maintained a forward valuation multiple of about 20 times, citing higher interest rates, geopolitical risks, and uncertainty over the Strait of Hormuz involving Iran and Oman.
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US Stock Market: JP Morgan raises S&P 500 year-end target to 8,000 on AI, earnings optimism
J.P. Morgan raised its S&P 500 year-end target to 8,000, citing stronger corporate earnings and growing confidence in AI investments. The brokerage also raised its 2026 and 2027 earnings forecasts, while maintaining a 20-times valuation multiple amid risks from higher rates and geopolitical uncertainty.
JPMorgan hikes S&P 500 target as AI spending starts paying off
JPMorgan strategists raised their year-end target for the S&P 500 to 8,000 points on Monday, citing strong corporate earnings and clear signs that heavy spending on artificial intelligence is starting to pay off.
JPMorgan just bumped its S&P 500 price target as it sees 'increasingly visible' AI monetization
Michael M. Santiago/Getty ImagesJPMorgan lifted its 2026 target for the S&P 500 on Monday. The bank pointed to signs that AI capex is paying off for Big Tech companies. Strategists say they expect AI related capex to swell to $1.2 trillion by the end of 2027.Returns on AI capex have been a looming question for Wall Street investors, but JPMorgan says that elusive AI monetization is a big reason it's boosting its S&P 500 price target for the year…
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