Tom Lee: Tech giants' bear market is over, but other sectors may face a "rolling bear market"

ME News update: On May 27 (UTC+8), Fundstrat Research Director Tom Lee said that although the “Big Seven Tech Giants” have shaken off declines, overall market risk has not been removed, and other sectors may gradually move into a “rolling bear market” later in 2026. He believes AI demand remains strong, which will help major indices stay resilient through the end of the year, but internal market differentiation will intensify. In an interview with CNBC, he said, “The bear markets for the Big Seven Tech Giants and the software sector are over,” but stressed that this does not mean the overall market.

Lee pointed to three potential disruptive factors: volatility during the mid-term election cycle, selling pressure after technology companies’ IPO lock-up periods expire, and tight energy supply. Among these, he views energy as the most direct risk, warning, “The moment of liquidation is coming: shortages in petroleum product inventories that cannot be eased in the short term,” and that energy-dependent companies will face pressure. He remains optimistic about the core support for the U.S. economy—energy independence and improved AI productivity—and advises investors to focus on directions with strong earnings certainty, saying, “The truly strong are companies that control scarce resources.” He noted that the semiconductor sector has shown signs of overheating, but in the short term, capital momentum still leans toward AI suppliers and tech leaders, while other industries may gradually enter an adjustment phase. (Source: ChainCatcher)