Citi raises S&P 500 target to 8,100 on AI earnings
Citi just raised its S&P 500 target to 8,100, saying the surge is mostly thanks to strong earnings from companies riding the AI wave.
Drew Pettit, who leads US equity strategy at Citi, brushed off the recent tech stock dip as "a little bit of a flash in the pan" and pointed out that AI, especially in semiconductors, is still fueling steady spending and profits.
Citi raises 2026 S&P earnings estimate
Citi boosted its 2026 earnings estimate for the S&P 500 from $320 to $350, noting most recent updates have been positive.
Even though stock prices are high, Pettit says his confidence comes from real earnings growth, not hype.
Citi likes markets like South Korea and Taiwan because of their tech connections, but is less keen on India right now due to slower earnings upgrades.
Industrials and materials tied to AI are also seeing stronger margins thanks to pricing power.