HSBC raised its year-end target for the S&P 500, citing stronger-than-expected earnings growth fueled by artificial intelligence investment across major technology companies. The bank said accelerating demand for AI infrastructure, cloud computing, and semiconductor capacity continues to support corporate profitability and investor sentiment.
Analysts highlighted large-cap technology firms as the primary drivers of earnings momentum, with AI-related capital spending boosting revenue expectations across software, chipmaking, and data center segments. HSBC also pointed to resilient consumer demand and stable macroeconomic conditions as supportive factors for equities.
The upgraded forecast comes as the S&P 500 trades near record highs amid continued investor rotation into companies tied to generative AI and digital infrastructure expansion.
