Citigroup Raises S&P 500 Target for AI-Driven Growth

Citigroup increased its 2026-end target for the S&P 500 index beyond 8,000, highlighting AI-driven growth and resilient corporate earnings. This move aligns with other bullish brokerages. The firm warns of the AI growth uncertainty past 2027 and potential challenges for sustained earnings.

Citigroup has set an ambitious new target for the S&P 500 index, projecting it to surpass 8,000 by the end of 2026, as the brokerage cites resilience in corporate earnings and AI-driven growth as key factors.

The index target was elevated to 8,100 from a previous 7,700, suggesting a 10% upside from its latest closing position. Citigroup bolstered its earnings-per-share forecast to $350 for 2026 and set a preliminary target of $400 for 2027.

Despite the confident outlook, Citigroup remains cautious about the sustainability of AI's impact beyond 2027, warning of a potential deceleration in growth.