Tom Lee Calls NVIDIA’s Record Market Loss a Major Buying Opportunity Following Monday’s Sell-Off
On Monday, NVIDIA (NVDA) experienced its largest single-day market cap loss in history, shedding a staggering $465 billion. Tom Lee, head of Fundstrat Research, addressed the market sell-off, describing it as an “overreaction.” In an appearance on CNBC, Lee argued that the double-digit drop in NVIDIA’s stock presents one of the biggest buying opportunities since the COVID-19 market crash, and he believes investors will see long-term benefits from entering the market now.
“Markets don’t like uncertainty, and to me, this is an overreaction. This kind of reaction is a great opportunity for investors,” Lee explained. So far, his assessment seems to be on track, as Nasdaq futures have risen 1% after the 3% drop on Monday, with NVIDIA gaining 5% in pre-market trading.
Monday’s sell-off was historic for NVIDIA, as it lost $465 billion in market cap, the largest single-day loss in the company’s history, according to Bloomberg data. Bitcoin (BTC) also took a hit, falling to $97,500 before quickly rebounding to above $103,000. At one point, BTC had reached as high as $105,000, but news surrounding the Chinese AI startup DeepSeek caused a sharp pullback. This price level will be a key target for bulls in the short term.
AI-driven bitcoin miners were also significantly impacted, with some seeing declines of up to 30%, including Core Scientific (CORZ), which has since seen a slight recovery in pre-market trading.
Lee also highlighted the overall health of U.S. equity markets, noting that bitcoin has outperformed small-cap stocks and financials year-to-date.
Looking ahead to Wednesday, the Federal Reserve’s policy meeting is expected to maintain the federal funds rate at its current range of 4.25% to 4.50%. Lee expressed some uncertainty regarding the meeting, suggesting that markets are currently too hawkish and placing too much weight on the possibility of a rate hike in 2025.
