Fundstrat Global Advisors co-founder Tom Lee, known for his accurate market predictions, has set another ambitious target for the S&P 500 index. Lee forecasts that by the end of this decade, the S&P 500 could skyrocket to 15,000, representing a potential upside of over 170%.

In an episode of Bloomberg's Odd Lots podcast, Lee explained his evidence-based approach to forecasting, which takes into account historical data and the impact of various assets. He believes that the bond market is more reliable than the stock market, referring to equities as the "land of C students."

Lee's forecasts are driven by several key themes that he believes will drive growth in the coming years. He emphasizes the impact of millennials reshaping the economy, the global labor shortage, and the rising importance of energy security and cybersecurity. By identifying the strongest stocks within these themes, Lee has consistently outperformed the market since 2019.

One of the major factors driving Lee's bullish forecast is the rapid adoption of artificial intelligence (AI). He argues that the potential for AI revenue is currently underestimated, particularly as the global labor shortage intensifies. By the end of the decade, Lee estimates that the labor shortage will be equivalent to 40 million workers or approximately $3 trillion worth of wages. Additionally, he predicts that technology will represent 40%-50% of the global stock market weighting, up from the current 20%.

Despite concerns about market concentration and the potential for an AI bubble, Lee remains optimistic. He points out that companies like Nvidia, a leader in AI technology, have stronger competitive advantages than companies during the dot-com era. Furthermore, he highlights the absence of excessively hyped initial public offerings (IPOs) in the current market.

While Lee's forecast may seem bullish, he is not alone in his optimistic outlook. Ed Yardeni, another Wall Street bull, predicts a "Roaring 20s" super-cycle and expects the S&P 500 to reach 6,000 by next year. By the end of the decade, Yardeni believes the index could climb to 8,000, representing a 46% increase.

As Wall Street analysts scramble to keep up with the market's relentless rally, these bold predictions are injecting further excitement into the investment landscape. However, it's important to note that these projections are based on various assumptions and factors that may evolve over time.