Tom Lee Forecasts S&P 500 at 7,700 by 2026, Bullish on Ethereum's $12K+ Potential
Tom Lee, Head of Research at Fundstrat Global Advisors, recently reaffirmed his S&P 500 target of 7,700 by the end of 2026, suggesting an approximate 11.8% increase from its current level of 6,827.63 as of December 12, 2025. He also holds an extremely bullish long-term view for Ethereum, suggesting a potential price of over $12,000 as part of his forecast, though other recent estimates from him go as high as $62,000.
S&P 500 Prediction Details
Lee's optimistic forecast for the S&P 500 reaching 7,700 by year-end 2026 is based on several key drivers:
Technology Growth: Robust growth driven by artificial intelligence (AI) and energy infrastructure is expected to boost corporate earnings.
Federal Reserve Policy: He anticipates potential "dovish" policies and interest rate cuts from the Federal Reserve, which historically can be positive for stocks.
Market Sentiment: Lee points to a pervasive "wall of skepticism" and a "fear of missing out" (FOMO) dynamic among investors as potential catalysts for further capital inflows once performance chasing begins.
Historical Precedent: He notes that extended bull markets fueled by technological innovation and monetary easing have historical parallels, like the Dot-Com boom.
Ethereum Prediction Details
Lee also maintains a highly bullish stance on Ethereum, calling it "grossly undervalued". His reasoning for the potential price exceeding $12,000 and possibly reaching $62,000 in the longer term is centered on:
Real-World Asset (RWA) Tokenization: He believes the tokenization of traditional assets like stocks and real estate onto the blockchain is a "1971 moment"—a seismic shift that could unlock trillions of dollars in value, with Ethereum being the primary platform.
Wall Street Adoption: Lee suggests that Ethereum is the "blockchain of choice for Wall Street" for institutional money movement and the tokenization of financial products.
Outperforming Bitcoin: He predicts that the Ethereum-to-Bitcoin ratio will see a breakout soon, meaning Ethereum could significantly outperform Bitcoin in the near future.
