JP Morgan Raises S&P 500 Target to 8,000 on Hyperscaler Earnings

J.P. Morgan has raised its year-end S&P 500 target to 8,000 from 7,800, citing three hyperscalers' ability to convert AI spending into real revenue.

The bank's strategist, Dubravko Lakos-Bujas, lifted the target after Amazon, Alphabet, and Microsoft demonstrated strong earnings growth in Q2 2026.

Amazon's AWS posted its fastest growth in 18 quarters at 37%, while Google Cloud revenue surged 82% to $24.8 billion.

J.P. Morgan expects AI spending to account for over half of the S&P 500's $1.5 trillion in capex in 2026, but warns of concentration risks and potential valuation compression if sentiment shifts in AI.