Lee Sees S&P 500 at 8,000 by August as Ethereum Leads Rally

Tom Lee, co-founder of Fundstrat, believes that the S&P 500 index will reach 7,900 to 8,000 by August. He cited strong earnings and cooling inflation fears as drivers of a 'chase' higher. Lee also mentioned AI spending as a significant theme.

The recent pullback in the market is seen as froth clearing rather than a fundamental shift. Fresh earnings data have shown that this quarter's results are running more than $15 ahead of estimates set at the quarter's start, with 2027 earnings estimates having risen to $8, nearing 410, and potentially reaching 425 by season's end.

Lee remains bullish on DRAM and memory stocks, expecting a recovery similar to 1997 and 1998. He named Ethereum alongside the 'Magnificent Seven' as rally leaders, but emphasized that it would play a role in boosting DRAM and memory stocks rather than pushing the S&P 500 higher.

Fellow panelist Dan Greenhouse offered a more measured view, arguing that an 8,000 target for the S&P 500 is not particularly aggressive given its current level near 7,700. He also pointed to the broad earnings picture, including strength in financials, insurers, and card companies.