Citi Raises S&P 500 Target to 8,100 as AI Fuels Corporate Earnings

Citigroup believes investment in artificial intelligence (AI) is creating a new capital-spending cycle that is supporting the technology sector while helping other industries improve productivity and earnings. Continued strength in corporate profits could underpin U.S. equity valuations and cushion the market against geopolitical tensions and inflationary pressure.

Citigroup has raised its year-end 2026 target for the S&P 500 to 8,100, citing the continued spread of an AI-related spending boom and strengthening growth momentum across both technology and non-technology companies. Citi expects resilient corporate earnings to offset some macroeconomic risks, leaving room for further gains in U.S. stocks.