Tom Lee Says Post-Midterm AI Stock Selloff Is Overdone, Fed May Skip December Hike

BitMine Chairman Tom Lee said the sharp selloff in artificial intelligence-related stocks after the U.S. midterm elections has been excessive.

Lee said in a recent CNBC interview that policy shock after the midterms had fueled anxiety over the outlook for AI infrastructure investment, according to industry officials on November 8. Still, he said the steep correction in related shares had gone too far.

He said demand is unlikely to slow because companies are still exploring ways to use AI and are already seeing tangible benefits. On the supply side, no new competitor has emerged that could disrupt the industry as a whole, he added.

Lee likened the possibility of a slowdown in U.S. AI infrastructure expansion to a speed bump. States that are more receptive to AI investment, or countries with relatively lower power costs, could instead benefit from the policy shift, he said.

He also said AI-related companies could find ways to respond to the policy changes, including by converting idle factories or office buildings into data centers.

On monetary policy, Lee said the Federal Reserve's September rate increase appears to have been a mistake given recent productivity data. On that basis, he said the Fed may not deliver another hike in December. He also raised the possibility that if employment risks become more pronounced, Fed policy support could help stabilize markets.