Tom Lee, head of research at Fundstrat Global Advisors, stated on CNBC’s Closing Bell that Friday’s stock market selloff represents a prime buying setup for crypto, semiconductors, memory stocks, and AI cloud providers rather than the beginning of a deeper market downturn.
- Fundstrat's Tom Lee identifies dips in crypto and tech assets as buy opportunities at key technical support levels.
- Technical strategist Mark Newton anticipates a market bottom forming between Friday and Monday.
- Dan Greenhaus of Solus Alternative Asset Management noted ASML and TSMC maintain strong demand despite interest rate pressure on CoreWeave.
- Ned Davis Research's Ed Clissold highlighted that S&P 500 profit growth hit 32% last quarter versus 25% expected, with 25% to 26% projected for the current quarter.
Fundstrat Identifies Technical Support in Crypto and Tech
Addressing market anxiety following a sharp rise in the Cboe Volatility Index (VIX) and escalating weekend oil price concerns, Lee argued that the core fundamentals driving artificial intelligence remain intact despite confidence issues in AI debt markets. Amid broader volatility seen across AI stock perpetuals and crypto markets, Fundstrat technical strategist Mark Newton projects that equities and risk assets could bottom between Friday and Monday.
Lee grouped digital assets alongside memory, semiconductors, and "neo clouds" as key areas primed for rebound. “I think the setup is for a buy on the memory, the semis, the neo clouds, tech broadly, crypto. I think that they’ve all pulled back to support levels at a time when people have become maybe very fearful of fundamentals,” Lee explained.
Cost of Capital Debated Ahead of Q3 Earnings
Offering a contrasting view, Dan Greenhaus, chief economist and strategist at Solus Alternative Asset Management, attributed recent price drops to elevated interest rates that weigh on speculative AI build-outs, such as cloud infrastructure provider CoreWeave. However, Greenhaus noted that hardware suppliers like ASML and Taiwan Semiconductor Manufacturing Company (TSMC) report sustained demand. Addressing concerns over sectoral weakness, Greenhaus remarked, “how many canaries have we killed in the coal mine over the last 3 years,” cautioning against reading isolated stress as a broad market alarm.
Meanwhile, Ed Clissold, chief U.S. strategist at Ned Davis Research, emphasized that capital carries a cost that markets are currently reassessing. Clissold pointed out that while large caps skipped their typical September weakness, small caps absorbed it, leaving Friday's decline as potential catch-up behavior. As investors analyze how AI market shifts impact small caps, upcoming third-quarter earnings will provide further clarity. S&P 500 profit growth surged to 32% last quarter—surpassing the 25% estimate—while analysts forecast 25% to 26% growth for the upcoming quarter.
Why It Matters
Tom Lee’s bullish stance highlights how institutional analysts view macro selloffs as opportunities to re-enter high-beta sectors like crypto at structural support. As interest rates strain debt-heavy AI build-outs, capital flow is shifting toward established infrastructure hardware and liquid risk assets. Investors should monitor upcoming Q3 corporate earnings and monetary policy signals to verify whether bottoming technicals align with sustainable macroeconomic strength.
