Fundstrat’s Tom Lee says the latest round of tech stock selling is nearing a bottom, and he plans to buy the dip, including cryptocurrencies.
Lee told CNBC that concerns surrounding AI funding are preventing the industry from turning into a bubble, and a tight debt market is limiting excessive speculation. He noted that AI is still delivering real progress, citing OpenAI’s recent work on 770 math problems as an example.
Fundstrat estimates that AI may require $30 trillion in investment over the next 25 years, a scale comparable to the cost of building mobile networks or roads. Lee also noted that U.S. households earn approximately $7 trillion annually in interest income alone.
He also noted that the Federal Reserve's stance could become more dovish, and U.S. Treasury yields might fall below 5%.
Lee's preferred sectors include memory chip manufacturers, NVIDIA, the Big Tech seven, software, cryptocurrencies, financial stocks, and cyclical stocks.