The brokerage’s updated outlook suggests a 3.4% upside from the previous close as U.S. stocks hit record highs.
Strong optimism surrounding AI investments continues to propel market momentum despite persistent concerns regarding national inflation rates.
The index recently celebrated its largest monthly gain since late 2020, driven by heavy investor confidence in technology.
HSBC analysts project that earnings per share will grow 20% by 2026, reaching a total of $325.
The elite “Magnificent Seven” technology firms still contribute a massive share of these historic market gains.
Current data shows first-quarter earnings climbing nearly 29% as AI-related heavyweights dominate the current financial landscape.
Strategists believe the index could even surpass 8,000 points if market participation broadens into lagging economic sectors.
Favorable economic conditions and higher tech valuations offer significant scope for further growth throughout the year.
