According to Tom Lee, Monday’s Market Drop is an Excellent Time to Buy Following the AI and Crypto Rout.

Tom Lee Calls NVIDIA’s Historic Market Loss on Monday a Key Buying Opportunity

On Monday, NVIDIA (NVDA) saw its biggest single-day market cap loss in history, shedding $465 billion. Fundstrat Research’s Tom Lee weighed in on the event, describing the market sell-off as an “overreaction.” Appearing on CNBC, Lee explained that the steep drop in NVIDIA’s stock represents one of the most significant buying opportunities since the early days of the COVID pandemic and will likely prove beneficial for investors looking to enter the market.

“Uncertainty often causes markets to overreact, and I believe that’s exactly what’s happening here. This type of overreaction creates a prime opportunity for investors,” Lee said. So far, his prediction appears accurate, as Nasdaq futures have gained 1% following the 3% drop on Monday, with NVIDIA rebounding 5% in pre-market trading.

Monday’s sell-off resulted in an astonishing $465 billion market cap loss for NVIDIA, marking the largest one-day loss in the company’s history, according to Bloomberg data. Bitcoin (BTC) also experienced a significant dip, falling as low as $97,500 before recovering to above $103,000. Prior to the downturn, BTC had briefly reached $105,000 but dropped after news of the Chinese AI startup DeepSeek surfaced. This level is now a critical point for bulls to target for a potential short-term rebound.

AI-related bitcoin miners also faced severe losses, with some stocks dropping as much as 30%. Core Scientific (CORZ) has since seen a slight uptick in pre-market trading.

Lee also highlighted the underlying strength of U.S. equities and pointed out that bitcoin has outperformed small-cap stocks and financial sectors so far this year.

Looking ahead, Wednesday’s Federal Reserve policy meeting is expected to leave the federal funds rate unchanged in the 4.25% to 4.50% range. Lee expressed some caution about the market’s current stance, suggesting that traders may be overly focused on a potential rate hike in 2025, which could be an overestimation of future Fed actions.