JPMorgan Calls for U.S. Stocks: AI Sparks Profit "Super Cycle," S&P 500 Looks to Reach 9,000 Next Year

According to JPMorgan's latest market outlook, benefiting from the strong corporate profits "supercycle" driven by artificial intelligence (AI), the bank has raised its target price for the S&P 500 index. Analysts expect that by 2026, corporate earnings per share (EPS) growth will exceed 20%. This profit-supported rally is not limited to tech giants but has spread to utilities and healthcare sectors, with a long-term outlook even suggesting a challenge to the 9,000-point level by mid-2027.
(Background: Bank of America warns: US stocks show signs of "2000 Internet bubble burst precursor"! Funds should focus on "these three major sectors")
(Additional context: Binance exposes the truth behind Bitcoin's plunge: US stocks form a "capital black hole" draining liquidity, with historical data predicting a rebound in just two weeks?)

The US stock market continues to demonstrate strong momentum fueled by the AI boom. Nataliia Lipikhina, Head of Equity Strategy for JPMorgan Private Bank in Europe, the Middle East, and Africa (EMEA), explicitly stated in an interview today (3rd) that the institution has raised its target for the S&P 500 index and is optimistic that corporate profit growth can reach 20% by 2026.

This optimistic forecast aligns with JPMorgan's overall macro market view. The bank believes the global economy is in a "supercycle" of corporate profits driven by AI, and this growth wave is no longer confined to tech giants but has broadly expanded into traditional sectors such as utilities, healthcare, and logistics, significantly accelerating global profit growth.

Profits support the rise, not valuation inflation

Looking back at JPMorgan strategist Dubravko Lakos-Bujas's team’s earlier adjustment this year, the bank has raised its year-end 2026 target for the S&P 500 from 7,200 to 7,600 points. Regarding profit expectations, the 2026 EPS estimate has been increased to $330 (up 22% annually), with 2027 EPS projected to reach as high as $385.

It is noteworthy that JPMorgan maintains a forward P/E ratio of about 22 times. This indicates that the bank believes the recent rally in US stocks is entirely driven by actual "profit growth" rather than irrational valuation expansion. This higher-than-consensus forecast reflects Wall Street’s strong confidence that AI capital expenditure will translate into productivity gains, enough to withstand macro risks such as earlier geopolitical tensions with Iran.

S&P 500 hits new highs again, next challenge: 9,000 points?

From actual market performance, as of the close on June 2nd, the S&P 500 has reached around 7,610 points, already approaching JPMorgan’s 2026 year-end target of 7,600 points. This suggests that, assuming corporate profits continue to materialize, the market still has room to steadily climb higher.

Looking further into the future, JPMorgan Private Bank even explores a more optimistic scenario: if the AI supercycle’s explosive power exceeds expectations, the S&P 500 could further challenge the 9,000-point level by mid-2027. Although this is not JPMorgan’s base case, it is considered a plausible potential development. In summary, despite risks from valuation and policy changes, Wall Street’s core narrative remains centered on "substantial profit realization from AI," which will be key to sustaining a prolonged bull market at high levels.