Fundstrat’s Tom Lee said on CNBC he expects the S&P 500 to reach 7,900 to 8,000 this month.

He also named Ethereum as an unexpected leader of the next leg higher, alongside the Magnificent Seven and software stocks.

Lee’s case for an August breakout

Lee said a deleveraging event a few weeks ago pushed cash to the sidelines. It also left investor sentiment too bearish, he said.

He added that strong earnings and cooling inflation fears are now driving a “chase” higher. AI spending also remains a strong theme, Lee said.

The anchor framed the recent pullback as froth clearing, not a fundamental shift. Lee agreed, then pointed to fresh earnings data.

This quarter’s results are running more than $15 ahead of estimates set at the quarter’s start, Lee said. He added that 2027 earnings estimates have risen $8, nearing 410, with room to reach 425 by season’s end.

Lee is no stranger to bold S&P 500 calls. He made a similarly aggressive prediction last November, and other strategists have floated comparable 8,000 targets for this year.

Ethereum’s unusual role in the bull case

Lee’s Ethereum comment came with an important caveat. He was not saying Ethereum would push the S&P 500 higher, but rather play a role on boosting DRAM, and memory stocks, the current catalyst for the entire market.

He remains bullish on semiconductor, DRAM, and memory stocks. Those groups are correcting now, but he expects a recovery similar to 1997 and 1998.

“The recovery here, I think, is going to be led by the Magnificent Seven, software and ethereum,” Lee said.

That puts Ethereum in the same sentence as mega-cap tech and software. It is a separate, forward-looking pick from his semis and memory thesis.

The comment lands as Ethereum has drawn more whale buying. ETF inflows have also picked back up in recent weeks.

A more measured take from Lee’s panelist

Fellow panelist on CNBC, Dan Greenhouse, offered a cooler view. He noted the S&P 500 was already near 7,700, so an 8,000 target is a modest percentage move.

Greenhouse also argued the earnings picture is broad, not just tech-driven. Financials, insurers, and card companies are all signaling strength, he said.

He pointed to two straight weeks of jobless claims under 200,000, a rare stretch historically. That backdrop, he said, is simply positive.

The bullish case echoes a broader debate over AI valuations. Some strategists question how far this rally can stretch.

Whether Ethereum can keep pace with the Magnificent Seven and software through August remains unproven. That answer will likely hinge on ETF flows and on-chain activity in the coming weeks.

Source: BeInCrypto