Unless you want to basically just put the Jeep body on a newer drive train, you need to stay somewhat close to original horsepower. My '60 CJ5 had the F-head 90hp Hurricane engine in it. It never stressed the drive train at all. Not sure if yours has the Dana/Spicer model 18 in it or not, it should have.
That is one tough gear box. Way overkill for most any Jeep that had one. You would not be likely to break it with anything you can shoehorn under the hood.
Here is a nice write up about it.
https://www.novak-adapt.com/knowledge/transfer-cases/model-18/
And the three speed tranny is fairly tough. But after that, things get a little more dicey. The drive shafts, front and rear ends, and axles are more than strong enough for a couple of hundred horses, but you can exceed their limit.
I grew up in the '60s, drove my CJ5 with dual rear wheels and a Konig PTO winch through places that only ATVs go now. I modded my Jeep, and helped with lots of others over the years. And the Buick V6 was THE upgrade that everyone did.
There is a reason that the old time Jeeps got the reputation for toughness, and unstoppability that they did between WW2 and about 1971.
They were Balanced and overbuilt for the power and stress levels they saw.
Plus the amount of ground pressure was low. Back in the day, when Chevy, Ford, and Dodge were building tough 4WD trucks with NP205s stock, and heavy duty everything, I regularly drove around them and then pulled them out when they were stuck to the doors in mud.
They were running "monster" 12.50/33 Gumbo Mudders, and I had stock sized Military tread tires on mine.
They could not figure out why their trucks got stuck and my Jeep just crawled around them. It was a simple matter of me being light for the amount of tire surface area.
If you want high horsepower tire spinning performance, go for it. But you would be happier starting off with a K5. Less work, and a lot more comfortable and safer.
Those small Jeeps were not designed for fast speed and horsepower. Too easy to tip over and just not built for it.
If you want to know why the old timers swear by the old Jeeps, drop a 90 hp Hurricane or better yet, the Buick in it and see what its like to drive. Get out in the back country, drop it in 2nd gear/low range, and it will go anywhere. You can drive between trees, cross streams, and maneuver places a full size truck or even a K5 just will not go.
Just, for the love of God, use the tapered roller bearing conversion kit to replace the needle bearing idler gear in the transfer case. Its been close to 40 years, and I still sometimes hear those needles screaming in my sleep.......
In 1973, they came out with a "super Jeep", which had a 304ci V8 option. Friend of mine had one, and brought it down to the swamp. That thing would fly. He drove circles around me on the roads. But I spent most of my time pulling him out of bogs. He tended to drive in, punch it, and spin it down.
He finally got tired of losing control and going into ditches and trees, and sold it to some guys at a camp a few miles over.
On the way home, on a graded sand road, they decided to have some fun. Wound up spinning out into the ditch, jamming the oil pan or something back and losing all the oil.
Danged if I didn't come driving along not even knowing they were anywhere around. I didn't even ask, just pulled up behind them and started hooking my winch cable up to the same place I had hooked it to so many times before.
When we realized they had dumped their oil, I tied a rope to the front end and towed them home. Never saw it again.