Fundstrat's Tom Lee Predicts S&P 500 Will Hit 15,000 By 2030 Driven By Gen Z And AI Wave - Schwab U.S. La

　　Tom Lee, the managing partner and head of research atFundstrat Global Advisors, shared his bullish prediction for the S&P 500, foreseeing it reaching 15,000 by 2030 riding the AI wave.

　　What Happened: Lees forecast is based on the emergence of a new cycle in the stock market, where annual returns are expected to compound at a high rate. This cycle is being driven by the younger generations, particularly millennials and Gen Z.

　　“This will be the 3rd time that stocks entered a cycle where annual returns compound at high teens,” Lee said in an interview with CNBCs Last Call.

　　The growth of companies focused on artificial intelligence is expected to yield high returns, according to Lee. Additionally, the increasing number of digital laborers investing in the economy is contributing to this cycle.

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　　Why It Matters: Lee‘s prediction is in stark contrast to the forecasts of other financial experts. In May, Goldman Sachspredicted a flat return for the S&P 500 for the remainder of 2024, suggesting that the stock market rally had peaked. However, Lee’s forecast indicates a more extended period of growth.

　　Another analyst, Gene Munster, predicted that the stock market would continue to rise for another three to five years before an AI bubble bursts. This aligns with Lees forecast of a sustained period of growth driven by AI-focused companies.

　　However, not all experts share this optimistic outlook. Economist Harry Dentwarned of a looming “crash of a lifetime” due to the current “everything” bubble, which he believes has yet to burst. Despite this, Lees prediction suggests a period of sustained growth, particularly in the AI sector.