Tom Lee Says AI Stocks Near Bottom

The Fundstrat co-founder argues that AI demand remains strong while infrastructure build-out limits growth, after a difficult October for technology shares.

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. Lee argued the AI market is not an overcapacity market.

Why it matters

Lee's view bears on investors weighing whether the recent technology decline marks an entry point, particularly given how concentrated major index funds are in AI-linked companies. The argument rests on the idea that how fast AI infrastructure can be built, rather than demand, is the binding constraint on growth.

Nvidia's reported second-quarter fiscal 2027 data-center revenue reached $89 billion, up 117% year over year. The company reports its next results on Nov. 17, and whether the growth rate holds will be a key test of Lee's argument.

The players

Tom Lee

Tom Lee is the co-founder of Fundstrat, an independent research firm known for its market strategy commentary and bullish calls on technology stocks.

Nvidia

Nvidia is a leading designer of graphics processors and AI computing hardware whose data-center sales have become a central gauge of demand for artificial intelligence infrastructure.

The details

Lee made the comments after October was the weakest month for the Nasdaq-100, as tracked by the QQQ fund, since March 2025, with a decline of roughly 7%. He argues that limits on how quickly AI infrastructure can be built are constraining growth rather than a lack of demand.

October 2026: Technology shares endured a painful sell-off.
Oct. 29, 2026: Fund holdings were measured showing Nvidia at 7.77% of the SPYM fund.
Nov. 2, 2026: Tom Lee said AI stocks are at or close to a bottom.
Nov. 17, 2026: Nvidia is scheduled to report its quarterly results.

The Tech Race

October's roughly 7% drop in the Nasdaq-100 was its weakest month since March 2025, placing Lee's bottom call against a recent technology sell-off. The debate centers on whether AI infrastructure spending, led by companies such as Nvidia, can keep pace with demand.

Investors holding broad S&P 500 or Nasdaq-100 index funds have significant exposure to AI-linked companies, so movements in these stocks flow directly into retirement and brokerage account values. Lee's argument suggests the direction of these holdings may hinge on how quickly the infrastructure behind AI can expand.

The takeaway

Investors watching concentrated AI exposure in their funds should track quarterly results from leading chipmakers, since those figures will show whether infrastructure growth is keeping pace with demand. Weighing the Nov. 17 Nvidia report alongside broader consumer spending data can help test whether AI-driven optimism is holding up.

What happens next

Nvidia reports its results on Nov. 17, which will show whether its data-center revenue growth continues and may test the argument that AI demand remains strong.