Nvidia selloff shows 'good news was priced in' & there's room for small cap rotation, says Tom Lee

Tom Lee, Fundstrat Global Advisors head of research, joins CNBC to discuss September market expectations after August volatility, how the market has processed Nvidia's earnings, and more.

[MarkEdward]

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[auboisdaline]

AI stocks are anticipated to lead the market in 2024. I’m inclined towards NVIDIA due to its solid long-term growth prospects and its role in supporting other AI companies. I know someone who achieved over 200% returns with NVIDIA. I’ll also explore the other recommendations you provided.

[RaymondcrawRaymondCrawley]

The main focus for markets now is Nvidia, which has powered a large chunk of the S&P 500’s recent earnings. Nvidia’s stock, up more than 100% this year, rose 2.5% in New York on Monday, sending the Nasdaq 100 index to another record high. I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas...

[JacobPaula]

I've owned NVDA for over 8 years. It's been up and down, but I believe in Jensen Huang and will stick with NVDA until Jensen says otherwise. I know that sounds crazy, but when the financial statements/Jensen, (same to me) tell me to sell, I will. I'm sure I won't sell at the top, but that's OK.

[brianwhitehawker]

I agree that many people are considering NVDA as the "Stock of the year." However, I'm curious about which stocks could potentially become the next META in terms of growth over the next decade. I've allocated $200k for investment, looking for companies to make additions to boost performance

[albacusBC]

So with all of these happening, do you think it's best for us who are not institutional investors to focus on index funds or individual stocks? I want to redistribute my 60k portfolio and I preferably want the asset class with the best return on investment. Thanks!

[DebeaumontCadiz]

*Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*

[Jacksonx]

I've been making a lot of losses trying to make profit trading crypto. I thought trading on a demo account is just like trading the real market.
Can anyone help me out or at least advise me on what to do?.

[soothingrelaxationandmedit]

Exactly why It's essential to conduct thorough research, consider the long-term outlook of the companies, and diversify your investments to manage risk effectively.

[thisguy]

Tom's predicted plus 15% move in small caps in August hurt a lot of people.

[JetLagRecords]

CNBC Television, amazing video keep up the amazing content

[erichvonmolder]

He is still selling Small Caps. Nvidia was about selling on the news. According to Lee about 2 months ago, Small Caps should be up 40% by the end of Summer? If you are Long, don't sell NVDA or these super big caps, just hold and forget about it. Now Small Caps will have their day, especially when the Fed starts cutting rates, but don't abandon the thing that got you here.

[Kaustavpatell]

I've been an investor in Nvidia for the past six years now because I strongly believe in the company and in the stock, but now I've been thinking of redistributing my portfolio of about $560k and buy other stocks. and asset classes. Maybe buy Tesla? They are also doing great things in the AI space. Some digital currencies too. What do you think?

[austinlam]

For addressing Analysts’ and investors concerns, Nvidia can provide changes in the backlog of the data center business group in 6 or 12-month periods during its quarterly investor briefings, known as the book to bill (BB) ratio, for manufacturers, analysts, and investors to assess early on.

[KungPowEnterFist]

Oh, its Tommy Boy! Hey, bud! How did that 30% gain in IWM in August prediction work out? Let me check...down 1.1% for August. Hmm, I'd say you missed that call BY A LOT. Is this guy ever right?

[Reynold-Kelly]

From $37K to $65K that's the minimum range of profit return every month I think it's not a bad one for me, now I have enough to pay bills and take care of my family. ❤️>

[JMEUTEUW]

The same guy who said that small caps would rise by 40% by end of summer 😂😂

[pricetagcitrus]

Dude has been trying make small caps happen for the past year lol

[jasonlai]

Too much outstanding stocks for Nvidia after 10 to 1 stock splits. No one talking about it. Same anount of $ to move Nvidia by $ 50 can have better gain by buying Amd instead.

[rustinjarrell]

Eight months ago Tom said the Russell 2000 would hit 3000. It all depends on how much the Fed cuts and we won't know that for another 3 weeks, but most traders say it won't be much.