Tom Lee of Fundstrat believes AI selloff is nearing end as yields drop below 5%

Tom Lee, managing partner and head of research at Fundstrat, stated the AI selloff is near its end, citing rates falling below 5% and a crowded short trade in tech, even as the Nasdaq slides. Lee named Nvidia, memory chips, the Magnificent 7 megacap tech stocks, software, and crypto as preferred buys, and is bullish on a broad cyclical rally. However, Gartner senior director analyst Will Sommer warns that AI revenue may be too small to justify planned spending, citing nearly $1 trillion in spending in 2026 and $6 trillion through 2030.