Tom Lee Says AI Stocks Near a Bottom
The call follows an October technology sell-off, with Nvidia's Nov. 17 results the next reported test of AI demand.
Updated on Nov. 4, 2026 in Artificial Intelligence
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Tom Lee, co-founder of Fundstrat, said on Nov. 2 that AI stocks are at or close to a bottom following a painful October sell-off in technology shares. The statement is a market opinion, not a settled outcome.
Why it matters
Lee argues AI demand remains strong while how quickly AI infrastructure can be built limits growth, and that the market is not in an overcapacity phase. Six AI-linked stocks made up about 26% of State Street's SPYM fund as of Oct. 29, so sentiment on these names carries weight across broad index holdings.
Nvidia's reported data-center revenue of $89 billion in the second quarter of fiscal 2027 is the figure most directly tied to the AI demand argument, and it grew 117% from a year earlier. The company's expected third-quarter revenue of $108 billion is a projection, not a reported result, and what Lee's view ultimately rests on is whether those growth rates persist.
The players
Tom Lee (Fundstrat)
Co-founder of Fundstrat, a research firm known for market strategy calls on technology and equities.
Nvidia
Chipmaker whose data-center processors power most large-scale AI training and inference, and whose results are a bellwether for AI infrastructure spending.
The details
Lee's case rests on the idea that demand for AI computing is outpacing the physical capacity to build data centers and the chips that fill them. In his framing, the constraint is construction and supply speed rather than a shortage of customers, which is why he says the market is not facing overcapacity. Because a few large AI-linked companies make up a sizable share of broad index funds, movement in those stocks shifts the performance of funds many investors hold without picking individual names.
Timeline
October 2026: a painful sell-off hit technology shares, with the Nasdaq-100 tracking fund down roughly 7%.
Oct. 29, 2026: fund holdings and weightings for State Street's SPYM were measured.
Nov. 2, 2026: Tom Lee made his statement that AI stocks are near a bottom.
Nov. 17, 2026: Nvidia is scheduled to report its results.
The Tech Race
Nvidia's reported second-quarter fiscal 2027 data-center revenue of $89 billion, up 117% year over year, is the benchmark against which investors are judging whether AI infrastructure spending is still accelerating. Lee's argument places the field in a build-out phase where construction speed, not demand, sets the pace.
Investors holding broad S&P 500 index funds are exposed to these AI-linked stocks through their weightings, so the performance of a few large names affects those holdings directly. Timing of any change in how those funds behave is not known, and no action is required from the reader based on this statement alone.
The takeaway
Lee's call is a view about where AI infrastructure spending goes next, not a confirmed bottom. Watch Nvidia's Nov. 17 results for whether data-center revenue growth continues at a pace that supports the argument.
What happens next
Nvidia reports its results on Nov. 17, 2026, which will provide the next reported check on whether data-center revenue growth holds at the level Lee's view assumes.
Further reading
For broader context on the companies and infrastructure behind these numbers, explore our Artificial Intelligence coverage.
Source note: This article includes information reported by Tri-City Herald.
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