Tom Lee: The AI super cycle is not over, driving US stocks to continue to pump, with ETH looking at 12,000 USD.

BitMine Chairman Tom Lee said in a recent interview this morning on 11/11 that the true long term driving force in the market currently lies in the “AI supercycle” and the “millennial labor wave.” He predicts that there is still upside potential for U.S. stocks, with the S&P 500 expected to challenge 7,000 – 7,500 points by the end of the year, and Ether (ETH) has the chance to double and surge to $9,000 – $12,000.

Yield misjudges the market, AI and millennials drive a new bull market.

Tom Lee reflects on the past three years, pointing out that most market bears have been misled by “yield curve inversion” and “inflation panic.” The market interprets the yield curve inversion as a recession signal, but overlooks that this time it is merely due to higher short-term inflation expectations. Many people also copied the stagflation script from the 1970s, but did not see that companies had already adjusted their strategies and were still maintaining stable profits in a high-interest rate environment.

Tom Lee stated that his company Fundstrat Capital has been focusing on high-quality companies that can withstand inflation and tightening, rather than being driven by emotions. He emphasized that AI is initiating a new wave of super cycle, similar to previous technological waves, coupled with the millennial generation reaching their peak in the workforce, indicating that there is still a lot of room for long-term bulls.

The year-end market trend is not over, and all major markets are expected to experience a pump.

Tom Lee believes that this drop is just a temporary phenomenon, and the market sentiment is actually too pessimistic. Although the government shutdown and tightening of funds have caused a short-term pullback in the stock market, the real focus is on:

“About 80% of institutional investors are trailing this year's performance. In order to make up for the gap before the end of the year, they are bound to replenish their holdings and accelerate their buying, which may actually boost the market.”

He pointed out that if the Federal Reserve (Fed) announces a rate cut in December, it would officially enter a loose cycle, benefiting financial stocks, small-cap stocks, and technology stocks simultaneously. These three groups are closely related to the crypto market and are expected to drive a new wave of pump.

Tom Lee predicts that Bitcoin (BTC) has a chance to surge to over a hundred thousand dollars by the end of the year, but he is more optimistic about Ether, as stablecoins and tokenized assets largely rely on Ethereum smart contracts, and Wall Street's vision of “asset on-chain” is also focusing on the Ethereum ecosystem.

( Ark Cathie Wood: The Fed is expected to cut interest rates in December, optimistic about Bitcoin and the cryptocurrency market strengthening )

Inflation concerns are amplified, and the probability of long-term bearishness is low.

Tom Lee believes that the market's concerns about “inflation rising” are exaggerated. Actual data shows that core service inflation has fallen below the long term average, and housing, wages, and commodity prices are all slowing down, with no signs of inflation resurfacing.

He also mentioned that when the U.S. bombed Iran's nuclear facilities this year, oil prices did not skyrocket, proving that the long-term impact of geopolitical events on the U.S. stock market and economy is often overestimated. As for the Fed's assumption that there will be no interest rate cut in December, he believes that the White House may accelerate the replacement of Chairman Powell, with a new team leading policy behind the scenes, and the overall environment is unlikely to turn into a long-term bearish trend.

Stop waiting for the bottom with cash in hand; gradually entering the market in batches is the way to go.

Tom Lee pointed out that since 2022, many people have been holding cash out of fear of a decline, watching the stock market rise for three consecutive years, still hesitating whether the overall stock prices are too high. He reminded with examples from after 2009 that many investors missed out on the entire bull market simply because they “sold too early and couldn't buy back.”

Therefore, he recommends investing in batches with a fixed amount over 12 to 18 months, without waiting for the perfect timing.

Tom Lee emphasized that retail investors who hold shares for the long term can actually make more money than institutions that are often chased by performance pressure. As for high price-to-earnings ratio companies, he distinguishes them into “overvalued” and “innovative.” Companies like Tesla and Palantir, which create new markets, have high valuations because the market is reflecting future growth in advance and should not be universally regarded as a bubble.

( Ark Cathie Wood: Tesla leads embodied intelligent AI, NVIDIA and Palantir are undervalued drivers )

The market tests human nature, and amid crises lie excellent opportunities.

Tom Lee believes that the biggest lesson in recent years is:

Most people prefer to believe emotions rather than data.

Many bears are trapped by inverted yields and inflation fears. Despite stable corporate profits and no bank failures, they still cling to a pessimistic script. He mentioned that the Japanese word for “crisis” is composed of “danger” and “opportunity,” meaning that every market downturn hides a chance for recovery. For instance, the tariff turmoil in April 2025 was met with widespread pessimism, but it turned out to be an excellent buying opportunity.

Tom Lee also reminds that beginners should not think that a pump is the norm; the US stock market almost experiences bear market fluctuations every year, and in mid-2025 it even dropped over 20% at one point. The real key is having faith and the courage to enter the market during downturns; those are the ones who will ultimately become winners.

This article Tom Lee: The AI super cycle is not over, driving the US stock market to continue to pump, and ETH looking at 12k dollars. First appeared in Chain News ABMedia.