Fundstrat’s Tom Lee Says Stock Market Correction an Overreaction to DeepSeek, Sees Opportunities Flashing
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Fundstrat chief funding officer Tom Lee says the market sell-off triggered by the discharge of low-cost Chinese language synthetic intelligence (AI) mannequin DeepSeek is an overreaction.
In a brand new interview on CNBC’s “Closing Bell,” Lee says that Monday’s market correction is probably going a chance for long-term traders.
Shares and crypto plummeted on Monday as traders processed DeepSeek’s implications, together with for AI chipmaker Nvidia (NVDA), one of many hardest hit shares.
“Markets don’t like uncertainty. They like visibility. They like moats. So markets are a little bit scared [Monday]. To me, it’s an overreaction. The Nvidia decline is the worst since March 2020, and we all know that that ended up being an enormous alternative for traders. It’s not a enjoyable day, however I’d be taking a look at this as a chance…
That is the character of expertise. I’d be personally stunned if Nvidia grew to become Betamax previously week. I imply that basically can be the sort of change that might be required to essentially justify promoting Nvidia right here. Given the necessity for AI due to international labor scarcity and Nvidia chip dominance continues to be robust, until a brand new mannequin emerges that doesn’t require GPUs (graphics processing items) completely, I’d say that markets simply usually do buyer-ready intention.”
Lee additionally says that he’s bullish on the monetary sector total in 2025.
“Financials, to me, signify a reasonably good elementary case of change this 12 months, as a result of we now have a brand new administration, a Fed that’s dovish, yields that aren’t painful for banks, and at a time when it might result in upside for capital markets exercise and multiples are low. So I believe financials stay our primary S&P sector concept.”
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