Tom Lee Says Nvidia’s Post-Earnings Gain Breaks a Longstanding Pattern

BitMine Chairman Tom Lee said on CNBC that Nvidia’s strong earnings pushed the stock higher, breaking a pattern in which good results did not always translate into share-price gains. In his view, that shows investors still care about fundamentals. He also pointed to gains in Salesforce, CrowdStrike and Okta, saying the move in those software names showed a positive market reaction to AI downstream trades and a relatively healthy broad response. Tom Lee said the weakness in Meta, Amazon, Alphabet, AMD and Micron may be tied to portfolio repositioning. Some investors, he said, were previously underweight Nvidia and may now need to sell other tech stocks to raise money to add the chipmaker. He added that earnings expectations for Nvidia have been revised sharply higher, but the stock has not fully caught up. Its price-to-earnings ratio is still contracting, which he said leaves the valuation looking low. Tom Lee also said data-center construction is becoming a political issue in the U.S. midterm elections. Even some Republican-led states, along with states that support data-center development, are now considering pauses on related projects. He said that may help explain why AI infrastructure stocks have been weak lately, while money has moved more toward AI downstream names.