Despite the Blue Wave and Nvidia uproar, just buy the tech dip: Fundstrat
NVDA•Fundstrat’s Tom Lee said he still believes technology stocks bottomed last week, despite political concerns over AI regulation and turmoil at Nvidia. Nvidia fell 7% shortly after Thursday’s market open, while the Nasdaq Composite was down about 0.6%.
1. Lee sticks to tech view
Tom Lee, Fundstrat’s head of research, said Nvidia’s leadership upheaval had not changed his view that technology stocks established an “internal bottom” last week. He said AI stocks had rallied from their lows despite negative headlines, and argued that Democratic leaders could ultimately be less harmful to AI development than investors feared.
2. Nvidia turmoil weighs
Nvidia announced Thursday that CEO Jensen Huang was stepping down and CFO Colette Kress would serve as interim CEO. Lee had floated several explanations for technology stocks’ resilience, including the possibility that Huang would retain a non-CEO role or that Nvidia could merge with another company; he asked, “What about a possible merger between NVDA and Tesla?”
3. Fundstrat sees possible recovery
Lee cited Fundstrat technical strategist Mark Newton, who said technology stocks had sustained “a lot of technical damage” but did not need to make meaningful new lows during consolidation. Newton expects a recovery later this month, and Lee said Fundstrat would still buy technology-stock dips. Shortly after trading opened, Nvidia was down 7%, the Nasdaq Composite was off about 0.6%, and the Nasdaq 100 was down about 0.7%.
