This article first appeared on GuruFocus.

Sep 17 - Wells Fargo (NYSE:WFC) pushed its S&P 500 price targets higher this week, lifting the year-end 2025 target to 6,650 from 6,3006,500 and moving its 2026 forecast to 7,200 from 6,9007,100.

The bank ties the upgrade partly to continued AI-driven capital spending and expects a shallower path for rates if the Federal Reserve starts cutting, markets price a possible 25-basis-point move next week.

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Other firms have nudged estimates higher too: Barclays (NYSE:BCS) raised its outlook to 6,450, while Deutsche Bank (NYSE:DB) set a loftier 7,000 target. Those calls reflect a wider Wall Street view that AI investment can support earnings even as investors debate valuation risks.

Wells Fargo's chief equity strategist, Ohsung Kwon, warned of froth in some pockets but added that if AI capex holds, the broader rally can keep going. The bank also cites potential policy tailwinds such as deregulation and proposed tax changes.