JPMorgan raises S&P 500 index target to 7800 points, warning of AI crowding trading risks

JPMorgan Chase has raised its target level for the S&P 500 index by the end of 2026 from 7600 points to 7800 points, citing an upward revision in corporate profit expectations and an increase in artificial intelligence capital expenditures. JPMorgan Chase pointed out that low-quality growth stocks, speculative growth stocks, and second - and third tier AI concept stocks pose extreme crowding risks, and fund withdrawals may trigger a pullback. JPMorgan recommends adopting a barbell strategy, holding high-quality growth and direct AI benefiting stocks, and allocating to low volatility, high-quality stocks.