Tom Lee Says Tech Sell-Off Is Nearing Its End — Recommends Buying the Dip

Fundstrat's Tom Lee believes the technology stock sell-off may be approaching its final stages and says he would buy the dip.
His bullish outlook is based on several factors:
- AI infrastructure spending remains justified. Lee argues that investment in AI infrastructure is not excessive, comparing its potential scale to the roughly $25 trillion invested in mobile networks and roadways.
- Shorting tech has become a crowded trade, potentially indicating that much of the selling pressure has already occurred.
- Interest rates have fallen below 5%, while the Federal Reserve could shift toward a more dovish stance.
However, Lee acknowledges that debt market constraints and geopolitical uncertainty remain significant risks.
His central argument: the AI investment cycle remains intact, and the recent tech sell-off could present a buying opportunity.