JPMorgan raises S&P target to 7800 points, while warning of AI crowded trading BlockBeats News: On June 25th, JPMorgan raised its year-end expectations for the US stock market, but also reminded investors that the crowding of AI related momentum stocks is becoming the most vulnerable part of the market. The JPMorgan strategy team led by Dubravko Lakos Bujas has raised the target level for the S&P 500 index by the end of 2026 from 7600 points to 7800 points, citing continued upward revision of corporate profit expectations and a near doubling of artificial intelligence capital expenditures. The bank stated that the consistent profit expectations for 2026 and 2027 have been raised by about 10% since the beginning of the year, a magnitude typically only seen in the recovery phase after a recession or major shock. However, JPMorgan did not interpret this upward adjustment as a risk-free market trend. The bank pointed out that low-quality growth stocks, speculative growth stocks, and second - and third tier AI concept stocks have become "extremely crowded", and once funds withdraw, they may trigger a rapid pullback. The strategist also mentioned that the increase in equity supply in the coming quarters and the possible tightening of monetary policy may limit the continued expansion of valuations. In terms of allocation, JPMorgan recommends adopting a barbell strategy: holding high-quality growth and direct AI benefiting stocks on one end, and investing in low volatility, high-quality stocks as portfolio buffers on the other end. The bank still has a positive outlook on technology, some industries, public utilities, defense, banking, and some healthcare growth stocks, but believes that the upward path in the market will not be linear.