Tom Lee Says the AI Selloff Is Ending and Tech Is a “Coiled Spring”

Fundstrat’s Tom Lee says the recent AI selloff is nearing its end and views the pullback as a healthy correction rather than a breakdown in the broader AI thesis.
Lee argues that increased scrutiny from credit and debt markets is helping restrain excessive speculation while underlying AI progress continues.
“I don’t think there’s too much money being thrown at AI today,” he said.
He also points to easing bond yields and the possibility of a more dovish Federal Reserve as two major headwinds that could begin to fade.
At the same time, Lee says shorting technology has become an increasingly crowded trade.
His bullish view remains concentrated across $NVDA, memory stocks, the Magnificent Seven, software and crypto.
The core thesis is that fundamentals across many AI-linked assets have remained relatively resilient even as valuations and sentiment compressed.
Lee describes that setup as a “coiled spring,” where improving macro conditions and continued AI execution could trigger a sharp rebound if positioning begins to reverse.
The call remains a market view rather than a confirmed bottom, but it highlights the growing debate over whether the recent AI weakness represents the end of the cycle or simply a reset within a longer-term uptrend.