JPMorgan Chase raises its S&P 500 target to 7800 points, warning of the risks of AI-driven crowded trading.

According to CoinWorld, JPMorgan Chase has raised its year-end 2026 target for the S&P 500 from 7600 to 7800, citing upward revisions to corporate earnings expectations and increased capital expenditure on artificial intelligence. JPMorgan Chase points out that low-quality growth stocks, speculative growth stocks, and second- and third-tier AI concept stocks face extreme crowding risks, and capital outflows could trigger a correction. JPMorgan Chase recommends a barbell strategy, holding high-quality growth stocks and stocks directly benefiting from AI, while also allocating to low-volatility, high-quality stocks.