Lee Sees S&P 500 Blast Past 8,000 on Earnings and AI

Fundstrat's Tom Lee has made a bullish call on the S&P 500, predicting it will reach 7,900-8,000 by the end of August. He cites strong earnings, improving sentiment, and continued AI spending as drivers of this growth.

Lee argues that the recent deleveraging episode forced investors to raise cash while pushing sentiment toward excessively bearish levels. With corporate results continuing to beat expectations, that cash could now return to risk assets.

The current-quarter earnings are running more than $15 above the estimates analysts had at the beginning of the reporting period. Expectations for 2027 have also moved higher, with earnings estimates approaching 410 and potentially reaching around 425 later in the season.

Lee also identified Ethereum as one of the assets that could lead the next move alongside the Magnificent Seven and software stocks.