Tom Lee: U.S. AI stocks still have room to rise; the S&P 500 could climb above 7,700 by year-end

Tom Lee said in an interview with CNBC today that although U.S. equity markets have hit record highs, valuations for leading stocks—particularly those tied to AI and semiconductors—remain reasonable. He noted that forward price-to-earnings ratios for semiconductor and tech leaders stand at approximately 22x, well below their 20-year historical highs. Demand in these sectors continues to grow explosively, so “there is still room for upside—the S&P 500 could reach 7,700 or higher by year-end.”