Bank of America calls for buying JPMorgan Chase (JPM), raising its target price to $408, optimistic that AI and investment banking business will provide a boost

JPMorgan Chase, the largest bank in the United States, delivered an outstanding Q2 earnings report! According to a report by CNBC, after the earnings release, Bank of America (BofA) analysts issued a new update—not only maintaining JPMorgan Chase’s “Buy” rating, but also significantly raising the price target to $408. The analysts are bullish that, driven by a rebound in the investment banking business, AI capital expenditures, and inflows into wealth management, JPMorgan Chase’s stock still has more than 20% upside potential.
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• BofA substantially raised its price target to $408
• Investment bank recovery and AI capital expenditure are key engines
• Favorable macro environment boosts Wall Street optimism

The strong performance of America’s financial giants is injecting a shot of confidence into Wall Street. On July 16, 2026 (Taipei time), according to CNBC, JPMorgan Chase (stock ticker: JPM), the largest bank in the United States, recently released what is seen as a “bellwether” 2026 Q2 earnings report. Its impressive figures across core business lines not only exceeded market expectations, but also attracted bullish attention and follow-on interest from multiple top-tier investment banks.

BofA substantially raised its price target to $408

After JPMorgan Chase released this strong set of results, Bank of America analyst Ebrahim Poonawala immediately issued a new research report. He not only reaffirmed his “Buy” rating on JPMorgan Chase, but also sharply increased the price target from the previous $362 to $408.

Based on JPMorgan Chase’s recent stock price oscillating in the $330 to $340 range, BofA’s new target implies the stock still has about 20% or more of meaningful upside.

Investment bank recovery and AI capital expenditure are key engines

To dig into why BofA is strongly bullish on JPMorgan Chase, Poonawala pointed out that the bank has shown strong growth momentum across key areas such as investment banking, trading businesses, and net interest income (NII).

More importantly, the analyst is highly optimistic about JPMorgan Chase’s future earnings and expects its full-year 2026 and 2027 earnings performance to be further revised upward. This is mainly attributed to the broad recovery in capital markets, continued inflows of wealth management funds, and the surge in demand for large-scale business activity driven by artificial intelligence (AI)-related capital expenditures—all of which will serve as core engines supporting growth in the performance of big banks.

Favorable macro environment boosts Wall Street optimism

This wave of bullishness on financial stocks is not unique to Bank of America. The report said JPMorgan Chase’s resilience reflects the current macroeconomic environment that is favorable for the overall banking industry—including the persistence of a high interest rate environment, stable growth in lending business, and the return of vitality in capital markets—providing strong fundamental support for large banks.

In addition to Bank of America, multiple well-known brokerages, including UBS, Evercore ISI, and Keefe Bruyette & Woods (KBW), have also recently followed suit in raising their price targets for JPMorgan Chase. BofA even boldly predicted that, amid the current favorable macro backdrop, it expects the earnings performance of multiple major U.S. banks to surpass market expectations, demonstrating strong “cash attraction” capability.