Barclays Raises S&P 500 Target to 7,400, Bullish on Tech Amid AI Boom
Barclays has lifted its 2026 price target for the S&P 500 to 7,400, forecasting an 11.2% upside from current levels. The revision reflects a 24x price-to-earnings multiple, with tech stocks commanding premium valuations—30x for AI-exposed megacaps and 28.5x for broader tech. Non-tech sectors face a subdued 20.5x multiple amid growth concerns.
Falling rates and resilient tech earnings are expected to drive the rally, though inflation and labor market risks linger. "Megacaps continue to execute in a low-growth macro environment," noted strategist Venu Krishna, citing unstoppable momentum in AI adoption. Tariff risks appear contained for now.