# Tom Lee says investors should jump into AI, semiconductor and Mag Seven stocks

Digest AI · Business & Funding · published 2026-10-19T07:35:00Z

Canonical: https://digestai.news/story/tom-lee-says-investors-should-jump-into-ai-semiconductor-and-mag-seven

## Summary

Bitmine Immersion Technologies chairman Tom Lee told CNBC that the recent pullback in AI‑related equities creates a "coiled spring" opportunity. He said investor fear over geopolitical tensions and AI‑buildout funding has driven a sell‑off, but the unwinding of hedge‑fund positions could make AI, semiconductor and Mag Seven names attractive entry points.

Lee highlighted that Nvidia edged up 0.5% while Nebius rose nearly 4% and CoreWeave gained about 3% on Monday. Goldman Sachs upgraded CoreWeave to "Buy" from "Neutral" but cut its price target to $106 from $139. Intel climbed roughly 4.7% after JPMorgan moved it to "Neutral" with an unchanged $85 target, and Datadog rose about 4.1% after Bernstein upgraded it to "Outperform" and lifted its target to $350 from $237. Memory and semiconductor ETFs fell 25.1% and 12.6% respectively, underscoring broader market pressure.

Lee concluded that AI‑related businesses remain a key driver of S&P 500 earnings growth and that valuations are still "quite reasonable" despite the recent volatility.

## Key points

- Goldman Sachs upgraded CoreWeave to Buy, cutting its price target to $106 from $139
- JPMorgan raised Intel to Neutral with a steady $85 target; shares rose about 4.7%
- Bernstein upgraded Datadog to Outperform, raising its target to $350 from $237; stock up ~4.1%

## Why it matters

Investor sentiment shifts could unlock capital for AI infrastructure, influencing funding, hiring and growth across the AI and semiconductor sectors.

## Sources

1. [Tom Lee Says Investors Should Be ‘Jumping Into’ AI, Semiconductor, Mag 7 Stocks Amid Sell-Off](https://stocktwits.com/news-articles/markets/equity/tom-lee-says-investors-should-be-jumping-into-ai-semiconductor-mag-7-stocks-amid-sell-off/cZx8qGTRBMs) (stocktwits.com, 2026-10-19)

Part of the developing story: [AI Chip Spending Faces Financial Limits](https://digestai.news/thread/coreweave-seeks-insurers-capital-to-fund-chip-spending) (3 stories)

## Cite

Digest AI, "Tom Lee says investors should jump into AI, semiconductor and Mag Seven stocks", 19 October 2026, https://digestai.news/story/tom-lee-says-investors-should-jump-into-ai-semiconductor-and-mag-seven

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