Tom Lee Says Yields Below 5% Mean the AI Selloff Is Nearly Over

Tom Lee, managing partner and head of research at Fundstrat, said the artificial intelligence selloff is nearing its end, citing rates back below 5% and a crowded short trade, or bets that tech stocks will fall, even as the Nasdaq fell. He named Nvidia, memory chips, megacap tech, software and crypto among preferred areas, while noting debt markets are partly shut and war uncertainty remains. Gartner senior director analyst Will Sommer said AI revenue will be too small to deliver profitable returns on planned spending of nearly $1 trillion in 2026 and $6 trillion through 2030. A Fundstrat report weighed $30 trillion of AI spending over 25 years and found enough capital to fund it.