May 26 (Reuters) - Goldman Sachs ( GS ) has raised its 2026 year-end forecast for the S&P 500 index to 8,000 from 7,600, citing continued strength in corporate earnings.

The target is 6.4% higher than the index's last close of 7,519.12.

"Earnings growth has powered the entire S&P 500 return so far this year, and we expect this dynamic to continue in the coming months," Goldman Sachs ( GS ) said in a note on Tuesday.

The brokerage also raised its S&P 500 earnings-per-share forecasts to $340 for 2026, implying 24% year-on-year growth, and to $385 for 2027, a further 13% increase.

Goldman's move adds to a growing wave of bullish calls from brokerages, with UBS GWM the latest to lift its outlook last week, citing robust AI-driven earnings that could help offset inflationary pressures and supply risks from the Iran conflict.

The brokerage said AI infrastructure beneficiaries are set to drive about half of the index's earnings growth this year, adding that while weak consumer spending and elevated costs pose risks, strong AI investments would offset these pressures.

"In addition, while S&P 500 earnings estimates have risen more quickly than index price appreciation, the semiconductor stocks at the heart of the AI infrastructure complex have recently outpaced their forward earnings," analysts at Goldman Sachs ( GS ) said.