Tom Lee: Further Upside Potential for US Stocks by Year-End, Overall Fundamentals Strong

May 24 — Tom Lee, chairman of BitMine (the largest Ethereum treasury), told CNBC in an interview that the U.S. stock market’s underlying fundamentals remain strong, showing resilience amid rising oil prices and climbing yields. Lee noted the U.S. economy has unique strengths: leadership in AI technology, relative energy independence, and robust consumer resilience. “Compared to the start of the year, U.S. stocks still have significant upside potential by year-end,” he said. “We’ll need to digest some headwinds later this year, but fundamentals are healthy now and backed by corporate earnings.” He pointed out that large IPOs from AI firms like OpenAI and SpaceX could generate a trillion-dollar wealth effect, boosting consumption and market momentum later this year. At the same time, Lee warned that a surge in major IPOs and lock-up expirations throughout 2024 will add extra supply pressure on U.S. stocks. On the AI and semiconductor sectors, Lee clarified they are not in a bubble—rather, the market is chasing “scarce assets.” Demand for AI-related products remains strong, he explained, while supply still falls short of that demand. When addressing his earlier prediction of a stock market correction, Lee said: “The MAG-7 and software sectors already went through a bear market. Later this year, other segments will, but the MAG-7 and software sectors will stay exempt. Upcoming events the market will face include: uncertainty from the midterm election season, a reckoning from tight oil product inventories, and supply pressure from lock-up expirations tied to IPOs like those from SpaceX and OpenAI.”