Tom Lee Predicts Bottom of AI Stock Selloff, Highlights Crypto Resilience

Tom Lee, co-founder of Fundstrat and chairman of Bitmine, believes the AI stock selloff has reached its bottom, citing constrained demand due to supply issues and crypto's response to a significant hack. In a CNBC interview, Lee stated, "I think we're at the bottom," noting that the decline has affected not just individual AI companies but also large tech stocks within retirement investment funds. He emphasized the difficulty of identifying price bottoms, stating, "Bottoms are dangerous because you don't know how much more downside you have at the bottom." Lee differentiated between an industry struggling to expand and one with excess capacity. He argued that the AI market remains tight, with spending constraints slowing growth without indicating a peak in demand. Intel exemplified this issue, with shares dropping nearly 30% after a disappointing forecast, despite a 78% increase in AI revenue to 7.3 billion dollars. Lee also pointed to crypto's limited reaction to the Binance security breach, suggesting that a market absorbing bad news may have fewer sellers left. Bitcoin fell about 4% to approximately 76400 dollars, with over 1.3 billion dollars in leveraged positions liquidated. U.S. spot Bitcoin ETFs experienced their largest daily outflow of October, totaling 643.2 million dollars. Binance reported that around 3 billion dollars of affected assets were frozen and pledged to cover losses.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.