Renowned Wall Street analyst, Tom Lee, Head of Research at Fundstrat Global Advisors, has made a bold prediction, stating that the S&P 500 could experience a remarkable surge of 174% to reach 15,000 by the end of the decade. Lee's forecast is driven by the potential impact of artificial intelligence (AI) on the U.S. economy, which is expected to increase economic output by 1.5% annually over the next ten years.

Lee's prediction is not without basis, as the S&P 500 has historically been a profitable investment over long periods, delivering a supercharged return of 2,050% in the last three decades, with an annual compound growth rate of 10.7%. Investing just $400 per month in an S&P 500 index fund, such as the Vanguard S&P 500 ETF, could amount to over $1 million over the next thirty years.

The Vanguard S&P 500 ETF is an attractive investment option for those looking to benefit from the growing influence of AI. This index fund tracks the performance of 500 large U.S. companies, including tech giants like Microsoft, Apple, Nvidia, Alphabet, and Amazon. By investing in the ETF, individuals can diversify their portfolios across these influential companies and capitalize on the potential growth driven by AI.

While the S&P 500 faced challenges in 2022, experiencing a 25% decline due to runaway inflation and rising interest rates, Tom Lee's prediction of a 24% rally in 2023 proved to be the most accurate on Wall Street. The index indeed surged by 24.2% that year, reflecting renewed market sentiment fueled by economic resilience and optimism surrounding AI advancements.

Considering successful long-term trends, it remains imperative to acknowledge the risks associated with stock market investments. However, purchasing shares of an S&P 500 index fund has historically presented a reliable method for achieving positive returns, with odds increasing as the holding period lengthens. Data back-tested to 1928 indicates that investors profited during 89% of five-year periods, 94% of ten-year periods, and 100% of twenty-year periods.

The Vanguard S&P 500 ETF is even more appealing due to its below-average expense ratio of 0.03%. With this low-cost option, investors would pay just $0.30 per year for every $1,000 invested in the index fund. Such affordability makes the ETF an appealing choice for those seeking long-term gains.

While Tom Lee's projection of the S&P 500 reaching 15,000 by 2030 may seem overly optimistic, the Vanguard S&P 500 ETF remains an attractive investment opportunity. Its inclusion of influential companies at the forefront of AI developments, coupled with the historical reliability of the S&P 500, presents a compelling case for long-term investors.

It is important to note that the opinion expressed in this article may differ from The Motley Fool's Premium Investing Services, and readers are encouraged to consult multiple sources before making any investment decisions.