"Wall Street Oracle" maintains bullish stance on US stocks: AI holds immense long-term growth potential

According to the Zhitong Finance APP, Tom Lee, co-founder and research director of the financial market research institution Fundstrat, known as the "Wall Street Oracle," maintains his optimistic stance on the U.S. stock market and points out that artificial intelligence (AI) is an important driving force for sustained growth. Tom Lee emphasizes that the application of AI is still in its early stages and compares it to the decades-long expansion process of the wireless communication industry—from 37 million users to 7 billion users. He stated, "We may still be in the first phase of the AI cycle, perhaps in the first quarter or the first third." During the decline of the U.S. stock market from February to April, Tom Lee and his team assessed whether the economic fundamentals warranted panic. He explained, "We took a step back and considered all the influencing factors; will the economy really be pushed off a cliff?" The strategist ultimately concluded that holding positions or buying on dips is the appropriate strategy during times of fear. He believes the S&P 500 index will reach 6,800 to 7,000 points by the end of the year. Tom Lee also compared the current investment in AI infrastructure to historical technology construction, such as the laying of submarine cables by Global Crossing (now Lumen Technologies). He pointed out that the current phase mainly focuses on building foundational elements like large language models and data centers, similar to the infrastructure development that occurred in wireless communication before application development. This model indicates that while early investors may face challenges, new opportunities typically emerge as technology matures. In response to concerns about companies making significant investments in AI without immediate returns, Tom Lee explained that this is similar to the typical technology adoption cycle. He cited the example of Global Crossing, stating, "The second owner of the hotel made a lot of money," implying that value often accumulates gradually to later participants after initial infrastructure investments. Tom Lee also noted that the current focus of AI has shifted to security and verification systems, which represents the next wave of development before widespread commercial applications. He also expressed confidence that companies like JP Morgan (JPM.US) and Goldman Sachs (GS.US) will soon leverage AI to enhance their business strategies. Tom Lee concluded, "There are still many positive factors to look forward to in the future." He reiterated that despite short-term market volatility and investment concerns, the AI revolution still holds tremendous long-term growth potential