UBS Group (UBS) Raises Its S&P 500 Target, Citing ‘AI Tailwinds’

UBS Group (UBS) has raised its year-end target on the benchmark S&P 500 index, saying that U.S. stocks should continue benefitting from “AI tailwinds” in coming months. Meet Samuel – Your Personal Investing ProphetStart a conversation with TipRanks’ trusted, data-backed investment intelligence

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The Swiss bank has raised its S&P 500 year-end price target to 7,900 from 7,500 previously and introduced a new June 2027 target of 8,200. The lender’s equity analysts say they remain bullish on the U.S. market due to resilient consumer spending, strong first-quarter earnings, and surging demand for artificial intelligence (AI) infrastructure.

UBS has also raised its 2026 earnings per share estimate for the S&P 500 to $335 from $310, representing 20% growth, and introduced a 2027 estimate of $375, implying a further 12% growth next year. The bank said higher profit estimates and heavy AI spending are the main drivers of its price target increases.

Risks Remain to the Market