JPMorgan Lifts 2026 S&P 500 Target to 8,000 as AI Spend Nears $900 Billion
Updated
Updated · Yahoo Finance · Aug 11
JPMorgan Lifts 2026 S&P 500 Target to 8,000 as AI Spend Nears $900 Billion
3 articles · Updated · Yahoo Finance · Aug 11
Summary
JPMorgan raised its end-2026 S&P 500 target to 8,000 from 7,800 and lifted its 2026 EPS forecast to $365, above the $358 consensus.
Eighty-seven percent of S&P 500 companies have reported, and the bank said second-quarter strength has been broad across sectors as heavy AI spending starts translating into business growth.
Microsoft, Amazon and Alphabet showed stronger cloud demand, bigger backlogs and better cash-flow visibility, reinforcing JPMorgan's view that AI infrastructure outlays are paying off.
JPMorgan still kept its valuation assumption near 20 times forward earnings, citing elevated rates, geopolitical risks and continued equity and debt issuance.
AI capital spending could approach $900 billion this year and top $1.2 trillion next year, though the surge is still pressuring free cash flow.