Tom Lee says stock market has bottomed after October's AI-driven selloff

Fundstrat's Tom Lee believes the US stock market has reached a bottom following October's sharp decline in technology and AI-related shares.
Speaking on CNBC on November 2, Lee argued that the recent correction has already played out across much of the market, while demand for AI infrastructure remains strong.
His outlook rests partly on the distinction between slowing investment growth and weakening demand. Lee said the AI industry continues to face capacity constraints rather than oversupply, suggesting the underlying expansion cycle remains intact.
He also pointed to the cryptocurrency market's relatively limited reaction to the recent $6.3 billion Binance security breach as evidence that selling pressure may be approaching exhaustion.
The Nasdaq-100 fell approximately 6.7% in October, its worst monthly performance since March 2025, as investors reassessed AI spending, corporate earnings and technology valuations.
Lee previously suggested that institutional investors were delaying purchases ahead of the November 3 US midterm elections, with political uncertainty weighing on their willingness to buy the dip.
His assessment remains a market forecast rather than confirmation of a bottom. Persistent inflation, elevated interest rates and concerns over AI investment returns could still put pressure on equities.
Source: CNBC, Fundstrat, Decrypt (November 2, 2026)