Fundstrat’s Tom Lee believes investors are overreacting to the recent market sell-off sparked by the emergence of DeepSeek, a low-cost AI model from China.
Speaking on CNBC’s Closing Bell, he suggested that the downturn, which hit both stocks and crypto hard—particularly AI chip giant Nvidia—could present a strategic buying opportunity.
According to Lee, markets thrive on predictability and are often shaken by sudden disruptions. He compared Nvidia’s steep decline to its worst drop since March 2020, a period that ultimately proved lucrative for long-term investors.
While uncertainty around AI competition is unsettling, he remains skeptical that Nvidia’s dominance could be dismantled so quickly. Unless an AI model emerges that completely eliminates the need for GPUs, he sees no fundamental reason for Nvidia’s sell-off to be justified.
Beyond the AI sector, Lee is optimistic about financial stocks in 2025. He pointed to factors such as a more accommodative Federal Reserve, a new administration, and stabilized yields that could benefit banks and capital markets. With valuations still low, he sees financials as the most promising sector in the S&P 500 for the year ahead.
UBS analyst Brian Meredith has revised his outlook on Berkshire Hathaway’s Class B shares, trimming the price target from $606 to $591, while maintaining a “buy” rating.
In a move not seen in decades, the U.S. Treasury Department has initiated a historic $10 billion bond buyback—its largest ever—targeting securities set to mature between mid-2025 and mid-2027.
In a bold move to reshape the future of ApeCoin, Yuga Labs has introduced a proposal that would dissolve the existing ApeCoin DAO and replace it with a streamlined management body called ApeCo.
Circle’s arrival on the New York Stock Exchange sent shockwaves through the market, and Cathie Wood’s ARK Invest wasted no time jumping in.