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Tom Lee: Nvidia's valuation is still relatively low, and the weakness in some AI stocks may be due to funds shifting towards Nvidia

BitMine Chairman Tom Lee stated on CNBC that after Nvidia announced strong performance, its stock price rose, breaking the previous trend where positive earnings reports struggled to drive stock prices, indicating that investors still value the company's fundamentals. Software stocks like Salesforce, CrowdStrike, and Okta also strengthened, reflecting a positive market response to downstream AI transactions, with an overall healthy market reaction.Regarding the weak performance of AI-related stocks such as Meta, Amazon, Alphabet, AMD, and Micron, Tom Lee believes that some investors may have previously underweighted Nvidia and might need to sell other tech stocks to raise funds for increasing their Nvidia holdings. He pointed out that Nvidia's earnings expectations have been significantly raised, but the stock price has not fully caught up, and the price-to-earnings ratio is still contracting, with the current valuation remaining relatively low.Tom Lee also mentioned that data center construction is gradually becoming a political issue in the U.S. midterm elections. Even some Republican-led states and states supporting data center development are beginning to consider pausing related projects, which may be one reason for the recent poor performance of AI infrastructure-related stocks, with more funds shifting towards downstream AI targets.

Next week's macro outlook: Non-farm payrolls set the path for September, the Federal Reserve's Beige Book reveals the inflation bottom line

According to Jinshi reports, the main theme of this week's market is dominated by changes in expectations regarding Federal Reserve policy. After Federal Reserve Chairman Waller's speech on Friday, the dollar quickly surged, closing at 99.69, up 0.85% for the week. Against the backdrop of rising U.S. Treasury yields and a stronger dollar, gold faced overall pressure, falling 3.24% for the week; spot silver dropped 3.82% this week.Here are the key points the market will focus on in the new week (all in Beijing time): Monday is pending, the G20 finance ministers and central bank governors meeting will be held until September 1; Tuesday at 17:00, Eurozone August CPI data; Eurozone July unemployment rate; Tuesday at 22:00, U.S. August ISM Manufacturing PMI, U.S. July JOLTs job openings, U.S. July construction spending month-on-month; Tuesday is pending, the 2026 SCO member states heads of state council meeting will be held; Wednesday at 20:15, U.S. August ADP employment change; Wednesday at 22:00, U.S. July factory orders month-on-month; Thursday at 02:00, the Federal Reserve will release the Beige Book on economic conditions; Thursday at 16:00, Eurozone August Services PMI final value; Thursday at 17:00, Eurozone July PPI month-on-month; Thursday at 20:30, U.S. initial jobless claims for the week ending August 29, Federal Reserve Governor Waller will be interviewed; Friday at 03:00, 2026 FOMC voting member Harker will deliver an opening speech at the "Federal Reserve Community" event; Friday at 20:30, U.S. August unemployment rate, U.S. August seasonally adjusted non-farm payrolls, U.S. August average hourly earnings year-on-year and month-on-month.The highlight of next week's data will be the U.S. August employment report on Friday. This report is the last employment data before the September 16 interest rate meeting and is a key window to assess the policy path after Waller's hawkish stance. Previously, Nvidia's strong performance and an expected revenue growth of about 70% for the next fiscal year have reignited enthusiasm for AI trading. Dell (DELL.O) will release its second-quarter earnings report after the market closes on Tuesday (September 1), with the market expecting an adjusted earnings per share of $4.91, more than doubling from the same period last year. Broadcom (AVGO.O) will release its third-quarter earnings report for fiscal year 2026 after the market closes on Wednesday (September 2).
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