The bank projects 28% Q2 earnings growth for the index, driven by AI capex and broad sector gains.
UBS raised its S&P 500 target to 8,200 by June 2027, citing accelerating earnings growth as the primary driver. The bank expects second-quarter profits to rise 28%, with all 11 sectors contributing to gains.
Semiconductor firms and AI-related capital expenditures are forecast to lead growth, with capex jumping 68% to USD 820 billion this year. UBS projects further expansion to nearly USD 1 trillion in 2025, supported by manufacturing improvements and steady consumer spending.
The bank downplayed Middle East tensions, framing them as a short-term distraction rather than a fundamental risk. It advised investors to focus on earnings resilience amid near-term volatility.