Fundstrat’s Tom Lee Declares AI Stock Selloff Has Bottomed Amid Supply Tightness, Crypto Resilience

A market strategist is assessing the recent selloff in AI-related stocks as having reached its bottom for two main reasons.

In a new interview with CNBC’s Squawk Box, Fundstrat co-founder Tom Lee says the demand for AI infrastructure remains high, suggesting the AI-related stocks will soon rebound after taking heavy losses last week.

Says Lee,

“I think we are at the bottom because, number one, the market for AI is still very tight. It’s not an overcapacity market, and the constraint we’re seeing is preventing more spending, or political opposition is preventing more spending. That is slowing the growth, but it’s not creating a top.”

Lee also says that the crypto market response to the hack of Binance is signaling a bottom.

“I think the second sign is the crypto exploit. The $6.3 billion loss from Binance, it’s barely caused a decline in crypto prices, because if crypto is a leading indicator for risk, you’ve already seen people sort of washed out. It’s barely hurting crypto prices.”

Lee maintains his prediction that the S&P 500 will end the year at more than 8,200, despite investor worries over AI spending, oil prices, midterm elections and the Iran war conflict.

“I do think markets are going to exit the year strong, but they have been struggling. Markets climb a wall of worry.”

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The post Fundstrat’s Tom Lee Declares AI Stock Selloff Has Bottomed Amid Supply Tightness, Crypto Resilience appeared first on The Daily Hodl.