Tom Lee Calls Monday’s Price Plunge a Fantastic Opportunity for Buyers After AI and Crypto-Led Declines.

Tom Lee Calls Monday’s Massive Market Loss in NVIDIA a Prime Buying Opportunity

On Monday, NVIDIA (NVDA) suffered the largest single-day market capitalization loss in history, shedding $465 billion. Tom Lee, head of Fundstrat Research, called the market sell-off an “overreaction.” Appearing on CNBC, Lee stated that the dramatic drop in NVIDIA’s stock presents an exceptional buying opportunity, comparing it to the great opportunities seen after the COVID market crash.

“Markets tend to overreact to uncertainty, and to me, this is one of those instances. This overreaction is an excellent chance for investors to step in,” Lee said. So far, Lee’s forecast seems to be holding up as Nasdaq futures climbed 1% after Monday’s 3% drop, with NVIDIA stock gaining 5% in pre-market trading.

Monday’s plunge saw NVIDIA losing a record $465 billion in market cap, the largest single-day loss ever recorded for the company, according to Bloomberg Data. Bitcoin (BTC) also experienced a dip, falling to $97,500 before recovering to above $103,000. Prior to the pullback, BTC reached as high as $105,000 but dropped following news about China’s DeepSeek AI. Bulls will likely target this price level for a potential short-term recovery.

The market also saw heavy losses for AI-powered bitcoin miners, with declines of up to 30%, including Core Scientific (CORZ), which is now showing a slight bounce in pre-market trading.

Lee noted the strength of the overall U.S. equities market 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 cautioned that markets are too hawkish at the moment, with some placing too much focus on the possibility of a rate hike in 2025.