Banking giant Goldman Sachs is raising its year-end target for the S&P 500, as the financial powerhouse points to stronger corporate profits.
Goldman raised its 2026 year-end forecast for the index from 7,600 to 8,000, citing continued strong earnings data. reports Reuters.
According to the report, the new target is 6.4% above the S&P 500’s last close of 7,519.12. Goldman says earnings growth has driven all of the S&P 500’s returns so far this year and expects the same dynamics to continue in the coming months.
The bank also raised its earnings per share forecast for the S&P 500 to $340 for 2026, implying 24% year-over-year growth.
Goldman says companies connected to AI infrastructure are expected to generate about half of the index’s earnings growth this year.
The bank says AI infrastructure beneficiaries can help offset weaker consumer spending and higher costs. Goldman also says semiconductor stocks tied to the AI infrastructure complex have recently surpassed their forward earnings.
The new call follows other bullish forecasts from major Wall Street firms.
Morgan Stanley recently predicted that the S&P 500 could rise to 8,300 points within 12 months, citing an ongoing recovery and a stock market that has already priced in several risks.
JPMorgan Chase also recently raised its 2026 S&P 500 target from 7,200 to 7,600, citing stronger profits, renewed investor enthusiasm around AI and reduced geopolitical risk.
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