Tom Lee: Nvidia Valuation Still Low, Some AI Stocks Weak Due to Rotation

Lee's framing shifts the narrative from AI demand concerns to internal market mechanics, suggesting the selloff is a portfolio rebalancing effect rather than a fundamental crack. This matters because it implies capital is concentrating into the perceived safest AI infrastructure play, which could amplify volatility in smaller AI names if rotation persists. The key question is whether this rotation is a temporary positioning move or a signal of narrowing conviction in the broader AI trade.