Tom Lee Calls Monday’s Massive Loss in NVIDIA a Significant Buying Opportunity
On Monday, NVIDIA (NVDA) saw a record-breaking single-day loss of $465 billion in market capitalization. Tom Lee, head of Fundstrat Research, weighed in on the market’s sharp decline, labeling it an “overreaction.” Speaking on CNBC, Lee suggested that this dramatic drop in NVIDIA’s stock offers one of the best buying opportunities since the early days of the COVID crisis and predicted that investors who seize the moment will likely benefit in the long run.
“Markets often overreact to uncertainty, and this sell-off is a perfect example. Such overreactions typically create great opportunities for investors looking to buy in,” Lee stated. His assessment seems to be accurate so far, with Nasdaq futures climbing 1% after Monday’s 3% drop, and NVIDIA showing a 5% recovery in pre-market trading.
Monday’s market turmoil resulted in NVIDIA losing a staggering $465 billion in market cap, marking the largest one-day loss the company has ever faced, according to Bloomberg data. Bitcoin (BTC) also experienced a significant drop, falling to $97,500 before bouncing back above $103,000. The cryptocurrency had reached as high as $105,000 earlier in the day but was pulled down after news of China’s DeepSeek AI development, creating a key level that bulls will aim to reclaim soon.
AI-based bitcoin miners, including Core Scientific (CORZ), were hit hard with losses of up to 30%, though Core Scientific has since seen a slight recovery in pre-market trading.
Lee also pointed to the overall resilience of U.S. equities, noting that bitcoin has outperformed both small-cap stocks and financials so far this year.
As attention now shifts to Wednesday’s Federal Reserve meeting, which is widely expected to keep the federal funds rate at the 4.25% to 4.50% range, Lee expressed concerns over the market’s current outlook, suggesting that investors are placing too much weight on the possibility of a rate hike in 2025.
