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Citi Eyes S&P 500 at 8100 on AI Surge
8 Jun
Summary
- Citigroup raises S&P 500 target to 8,100 by end of 2026.
- Firm forecasts S&P 500 earnings per share at $350 for 2026.
- AI growth beyond 2027 remains a key question for markets.
Citigroup has joined other Wall Street firms in raising its target for the S&P 500 index, now projecting it to reach 8,100 by the end of 2026. This optimistic outlook is underpinned by the remarkable resilience of corporate earnings and the transformative impact of artificial intelligence.
The brokerage has also revised its earnings-per-share forecast for the S&P 500, setting a new target of $350 for 2026, an increase from its previous $320 projection. A preliminary target of $400 has been introduced for 2027.
While acknowledging the current AI-driven momentum and strong earnings are expected to offset short-term risks, Citigroup expresses caution regarding the long-term persistence of this growth. The firm questions whether AI's productivity gains can be sustained beyond 2027, likening the current expansion to a significant but potentially one-time capital expenditure supercycle.
