Citigroup sets its 2026 S&P 500 price target at 7700 points, believing that AI will remain a key theme.

Citigroup recently released its market outlook, setting a target of 7700 points for the S&P 500 by the end of 2026.

This forecast is primarily based on confidence in continued strong corporate earnings and the structural benefits of investment in artificial intelligence (AI). Strategists point out that AI infrastructure development is expected to be a key market theme in 2026, a view consistent with most Wall Street institutions.

However, Citigroup further emphasizes that the market focus is expected to gradually shift from companies currently providing AI technology to those that can effectively adopt and apply it.

Citigroup strategists stated in the report: "While AI is expected to remain a core focus of the market, its development path may present a 'winner-takes-all, loser-out' scenario." This means that companies that successfully integrate technology and achieve transformation within the AI industry chain will reap excess returns, while those lagging behind may face elimination.

This target represents an upside of approximately 12.7% compared to the previous trading day's closing price of 6827.41 points for the S&P 500.

Citigroup's report reflects its optimistic outlook on the growth momentum of US corporate profits and the evolution of the technology industry, especially as artificial intelligence gradually moves from technological investment to commercial application. (Source: BLOCKBEATS)