Nvidia earnings shows 'unrelenting demand', says Fundstrat's Tom Lee
Speakers
Tom Lee
— Managing Partner & Head of Research, Fundstrat
Summary
Fundstrat's Tom Lee discusses the market after Nvidia earnings, highlighting unrelenting AI demand and a bullish view on US stocks into year-end. He warns of later headwinds from a petroleum shortage and IPO lockup expirations, but expects Mag-7 and software to be spared.
- Nvidia earnings confirm unrelenting demand for AI chips.
- Tom Lee is bullish on US stocks overall, citing structural AI tailwinds and energy independence.
- The consumer may get a tailwind from IPO wealth effects, especially from SpaceX and OpenAI.
- Later this year, a shortage of petroleum products will create headwinds for the market.
- IPO lockup expirations (SpaceX, OpenAI) will add stock supply overhang.
- Mag-7 and software names are expected to be spared from the bear market in other names.
- Semiconductors are not yet a bubble, but could become one.
Trade Ideas
US stocks have upside into year-end
US stocks have more upside into year-end because the US has a structural AI driver, energy independence exposed by the war, and healthy consumer fundamentals. The market has shown resilience despite higher oil and yields.
