Analysts at JP Morgan Private Bank say the S&P 500 may be heading for a 9,000-point high, fueled by broader adoption of artificial intelligence and an ongoing earnings supercycle.
Strategist Kriti Gupta say the index has achieved double-digit earnings growth for six consecutive quarters. Global earnings growth accelerated from 15.3% annualized in the fourth quarter of 2025 to 22.6% in the first quarter of 2026, the highest in more than four years.
The analyst says 9,000 could happen by mid-2027, but requires AI adoption to spread beyond the tech sector, boosting productivity and margins across the economy.
The largest cloud providers are spending more than $800 billion annually on AI investments, rising to an estimated $1.16 trillion by 2027. Analysts draw a parallel to productivity growth in the late 1990s, when the S&P 500 delivered returns above 20% for five consecutive years.
According to JP Morgan Private Bank:
“While not the base case, the S&P 500 could reach 9,000 points by mid-2027. A gain of ~22% from current levels may seem optimistic, but remains entirely plausible.”
Key risks include rising bond yields, with 10-year government bond yields rising more than 40 basis points in May, and ongoing geopolitical tensions. The analysts describe the current pullback in semiconductor and momentum stocks as “completely healthy” and are positioning themselves higher for the next leg.
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