Goldman Sachs Lifts S&P 500 2026 Target to 8,000, Fueled by AI Profits

Goldman Sachs on Tuesday raised its year-end 2026 S&P 500 target to 8,000 from 7,600, citing robust earnings growth propelled by artificial intelligence. The new target, announced on May 26, implies a 6.4% potential gain from the index's close of 7,519.12. The bank lifted its 2026 earnings-per-share estimate to $340, representing 24% annual growth, and its 2027 EPS forecast to $385, up an additional 13%. AI infrastructure beneficiaries are expected to contribute roughly half of the S&P 500’s profit increase this year. Goldman’s upgrade follows a similar move by UBS last week, which also pointed to AI’s capacity to offset consumer spending weakness and supply-chain risks. Semiconductor stocks at the core of AI have outpaced forward earnings, yet overall index earnings growth has accelerated faster than price gains, supporting the higher target.