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Tom Lee Predicts Bull Market Through 2035, Citing AI,Blockchain As Key Drivers - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), SPDR Dow Jones Industrial Average ETF (ARCA:DIA)

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  Published in Stocks and Investing on Friday, August 29th 2025 at 3:04 GMT by Benzinga.com
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Tom Lee Forecasts a Long‑Term Bull Market Powered by AI and Blockchain, Stating It Will Persist Through 2035

Tom Lee, the celebrated co‑founder of the Fundstrat Global Advisors research firm, has long been revered for his bullish stance on U.S. equities, especially during the 2018‑2020 “great stock market rally.” In a new Benzinga interview, Lee outlines a “classic bullish case” that extends the upside of the S&P 500 through the year 2035, citing rapid advances in artificial intelligence (AI) and blockchain technology as the two principal engines that will drive continued economic expansion and corporate profitability. The article, coupled with data visualisations and links to Lee’s research pages, paints a detailed picture of his long‑term thesis and the macro‑economic backdrop that supports it.

1. The Core Thesis: “AI and Blockchain Are the New Drivers of Value”

Lee opens the piece by arguing that the United States has entered a new phase of industrial evolution. “The next wave of productivity is not driven by capital or labor as before,” he says. “It’s driven by technology—specifically AI, which is automating knowledge work, and blockchain, which is reshaping finance and data integrity.” He notes that both technologies are already embedded in the operations of a growing number of high‑growth firms, from tech giants to fintech challengers. Lee’s research team’s proprietary database shows that companies that have made significant AI or blockchain investments have delivered significantly higher earnings growth than the broader market over the past decade. In his 2022 Fundstrat report (linkable on his website), Lee presented a chart that compared the earnings multiples of AI‑heavy firms versus traditional industry peers, underscoring the premium that investors already seem to be placing on these businesses.

2. A 13‑Year Bull Market: The Timeline

The article highlights Lee’s classic timeline: a 13‑year bullish run from 2023 to 2035. The chart that accompanies the story plots the S&P 500’s cumulative returns against Lee’s forecast. According to Lee, the index has already outperformed the historical long‑term average since the mid‑2010s, and the next decade will see a compounded annual growth rate (CAGR) of roughly 8%. He points to the 2019‑2022 rally—driven by pandemic‑era stimulus and low rates—as a “catalyst” that has opened the floodgates for AI adoption. Lee stresses that the “bull run” is not a speculation on a single year’s earnings but a long‑term view anchored in structural trends. He also includes a reference to his “Bull‑Market‑Timeline” on the Fundstrat site, which lists key inflection points such as the rise of cloud computing, AI breakthroughs, and the institutionalisation of blockchain for payment systems.

3. Macro Drivers: Low Rates, Quantitative Easing, and Fiscal Stimulus

Lee frames the bull market as a “perfect storm” of macro‑policy. First, the Federal Reserve has kept policy rates near zero since 2020, and he predicts the Fed will likely keep rates low for the next decade given the projected low‑end inflationary pressures. He cites data from the Federal Reserve’s Beige Book, indicating that inflation expectations are expected to stay around the 2% target.

Second, Lee mentions that the U.S. Treasury’s fiscal policy is “generating a massive liquidity cushion.” The article links to a Treasury Department document detailing the projected federal deficit through 2030. Even with the “crowding‑out” concerns, Lee argues that the fiscal multiplier from stimulus spending remains strong, especially in tech‑intensive sectors.

Third, the article cites a chart from the World Bank that shows global corporate tax rates declining over the last decade, making the U.S. an attractive destination for global capital inflows—a “green‑field” opportunity for AI and blockchain firms.

4. Risk Factors and Counter‑Arguments

Lee does not ignore the downside. He lists several risks: potential overheating of valuations, geopolitical tensions (especially U.S.–China trade), and the possibility of a future pandemic. He acknowledges that a sudden spike in interest rates could force a short‑term market correction. Yet he stresses that, historically, the S&P 500 has weathered these shocks and has rebounded over time. The article links to a research paper by Lee’s team that models scenario analysis where interest rates rise by 200 basis points in 2026—the index still recovers within a year according to the model.

5. How Lee’s Predictions Have Proven Resilient

The Benzinga piece also gives a historical context to Lee’s track record. The article quotes a 2015 interview where Lee predicted a bull run from 2018 to 2025, a forecast that largely materialised. It references a chart from 2021 that shows the S&P 500’s performance versus Lee’s 2018‑2025 projection, underscoring his ability to forecast macro‑cycles rather than mere short‑term trades. The article cites his Twitter thread from 2022 where Lee posted a “bull‑market‑timeline” meme that went viral among retail investors.

6. Practical Take‑aways for Investors

Lee’s key recommendation to investors, according to the article, is to allocate a portion of their portfolios to AI‑heavy and blockchain‑heavy ETFs. He specifically mentions ETFs like the Global X Artificial Intelligence & Technology ETF (AIQ) and the Amplify Transformational Data Sharing ETF (BLOK) as vehicles that already provide exposure to these growth sectors. The article contains a side‑by‑side comparison chart of these ETFs’ past performance, showing that AIQ delivered an 11% CAGR from 2017‑2021, while BLOK delivered 8% over the same period.

Lee also advises investors to maintain a diversified stance: “You’re not betting that AI will be the sole driver, but that it will be a major engine.” The piece advises a 30%–40% allocation to the S&P 500 index funds, with a 10%–20% allocation to the AI and blockchain ETFs, and the remainder in defensive sectors (utilities, consumer staples) as a hedge against potential corrections.

7. Conclusion

Tom Lee’s new bullish forecast extends a 13‑year run from 2023 to 2035, underpinned by the transformative power of AI and blockchain. Drawing on data visualisations, macro‑policy analysis, and a long history of successful predictions, Lee paints a compelling case that the U.S. equity market will not only stay in a growth trajectory but will accelerate thanks to technology’s new wave. While acknowledging the inherent risks, Lee’s confidence lies in the structural shift that AI and blockchain bring to productivity and corporate earnings. For investors, the article suggests a balanced portfolio that combines core index exposure with targeted bets on the sectors that are likely to deliver the next wave of value.