Tom Lee warns next week could be a "critical turning point" for US stocks: Nvidia's performance will determine whether AI confidence can be reignited

Odaily News, Tom Lee stated that next week could become an important "clearing event" for the US stock market, with the market reassessing enthusiasm for artificial intelligence (AI) investment and uncertainty surrounding Fed policy.

Tom Lee pointed out that the core question for the market right now is whether investor confidence can be restored after the recent cooling of AI trading. AI-related stocks have seen stagnating performance recently, influenced by two main factors: on one hand, concerns over data center investment demand and profitability returns; on the other hand, certain political factors have added to the uncertainty in AI industry development.

However, Nvidia CEO Jensen Huang could be the key figure in reigniting market confidence. If Nvidia can demonstrate that demand for AI infrastructure remains strong, sustained order growth and market demand could drive capital back into the AI sector.

Meanwhile, Tom Lee noted that uncertainty over the Fed's policy outlook continues to rise, and upcoming speeches by officials will be important signals for the market to gauge the interest rate path.

Market participants believe that Nvidia-related news and Fed officials' statements next week could serve as key catalysts affecting tech stocks and overall risk assets. Investors will be watching whether the AI rally can regain upward momentum.