Summary
- Tom Lee, chairman of BitMine, said the sharp drop in AI-related stocks after the U.S. midterm elections amounted to an excessive stock-price correction.
- Lee said demand for AI infrastructure investment and companies' shift toward data center conversions would remain intact, and that any slowdown in AI infrastructure expansion could become an opportunity for some regions.
- He said recent productivity data suggest the Fed's September rate hike was a mistake and that an additional increase in December may not happen.
Forecast Trend Report by Period
Tom Lee, chairman of BitMine, said the sharp selloff in artificial intelligence-related stocks after the U.S. midterm elections has been overdone.
Lee told CNBC in a recent interview that policy shock after the midterms had heightened anxiety over the outlook for AI infrastructure investment, according to industry sources on Nov. 8. Still, he said the steep correction in related shares had gone too far.
He said companies are still exploring how to use AI and continuing to see tangible benefits, indicating demand is unlikely to slow. On the supply side, no new competitor has emerged that could reshape the industry as a whole, in his view.
Lee likened the possibility of a slowdown in U.S. AI infrastructure expansion to a speed bump. He said it could instead create opportunities for states that are more open to AI investment or for countries with relatively lower electricity costs.
He also said AI-related companies could find ways to respond to policy changes, including by converting idle factories or offices into data centers.
On monetary policy, Lee said the Federal Reserve's September rate hike appears to have been a mistake in light of recent productivity data. On that basis, he said, the Fed may not deliver another increase in December. He added that Fed policy support could help stabilize markets if labor risks become more pronounced.
