Tom Lee says AI stock selloff nears end, compares it to Cisco in 1997
Fundstrat's Tom Lee sees the AI stock decline as a buying opportunity and draws parallels with Cisco's 1997 drawdown, per Stocktwits.
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what happened
Fundstrat Managing Partner Tom Lee told CNBC on Friday, as reported by Stocktwits, that the recent drop in AI stocks looks more like an opportunity than the start of a deeper decline. The Nasdaq Composite fell 2.6% on Thursday, its worst one-day loss since June, while the SMH and SOX semiconductor ETFs dropped 6% and 7%.
Lee said Treasury yields have slipped back below 5% after fears of a climb toward 6%, and that the Federal Reserve could turn more dovish. He likened the situation to Cisco in the late 1990s, when its shares fell sharply in 1997 before resuming their advance. His preferred names include Nvidia, memory stocks, the Magnificent Seven and software.
why it matters
This is one strategist's view, not a forecast. Bond yields and Fed policy remain the key drivers: if rates keep easing, that could support tech stocks, but correction risks persist. Stocktwits data showed retail sentiment toward the S&P 500 ETF in extremely bearish territory at the time of writing.
instruments
sources
- Tom Lee Says AI Selloff Is Nearing Its End, Points To Setup Similar To Cisco's 1997 Rout — Sees Opportunity In NVDA, Software And Beyond — Stocktwits, 24 October 2026 at 10:17 UTC
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