Tom Lee Says Democratic Sweep Could Fuel 15% to 20% Tech Rally

Fundstrat managing partner and head of research Tom Lee said technology stocks could rise by 15% or more, possibly 20%, as he expects hedge funds to rebuild exposure after Democrats’ midterm sweep. Lee called Wednesday’s selloff in data-center operators an overreaction; IREN, Hut 8, Applied Digital and Core Scientific fell 1.2% to 13%. He expects roughly half of hedge funds, which focus on technology, media and telecommunications, to return to tech, with cloud hyperscalers leading, after Amazon rose 7.1% and Alphabet 3.4% in early trading. Goldman Sachs economists warned Democratic state and local wins could cause temporary data-center construction pauses affecting about 45% of planned U.S. capacity growth.