Woofun AI reports that JPMorgan Chase has increased its 2026 year-end target for the S&P 500 from 7,600 to 7,800 points, driven by a 10% rise in corporate earnings expectations and surging AI capital expenditure.

However, the bank warns that second- and third-tier AI concept stocks are "extremely crowded," posing a risk of rapid pullbacks if funds withdraw. Strategists advise a barbell allocation strategy, combining high-quality growth with low-volatility buffers, while noting that tighter monetary policy and increased equity supply may constrain further valuation expansion.