Tom Lee: AI stocks are overpriced, Federal Reserve unlikely to raise interest rates again in December

Tom Lee, chairman of BitMine, an Ethereum treasury firm, told CNBC in an interview that policy shocks following the midterm elections have amplified market concerns about the outlook for AI infrastructure development, but the sharp repricing of related stocks has been excessive. He noted that companies are still exploring AI and benefiting from it, with demand not slowing and no new competitors emerging on the supply side that could upend the entire industry. Lee described a potential slowdown in U.S. AI infrastructure development as a "speed bump", saying it could create opportunities for U.S. states that actively embrace AI and countries with lower power costs. He added that companies can adapt to policy shocks by, for example, repurposing idle industrial buildings and office spaces for data centers. On monetary policy, he argued that the latest productivity data makes the Federal Reserve’s September rate hike look like a mistake, and no further rate increases are likely in December. If employment risks emerge, the Fed’s policy support could also play a stabilizing role. He emphasized that it is too early to assert that AI infrastructure development will not proceed, and some pessimistic judgments may have gone too far.