Tom Lee: No signs momentum trade will end anytime soon

Market Sentiment & Investment Strategy - Despite facing criticism, the firm maintained a bullish stance, advising clients to hold or buy during market downturns, recognizing that excessive fear can cloud judgment [2][4] - The firm believes many investors are overly influenced by their own biases and portfolio losses, hindering their ability to see the bigger picture [3] AI Industry Analysis - The firm suggests that the AI industry is still in its early stages, comparing its potential growth to the exponential expansion of the wireless industry, which saw user numbers increase from 37 million to 7 billion over 20 years [6] - The analysis indicates that concerns about an AI bubble may be premature, as penetration rates are still low, estimating that the industry is only in the first quarter or first third of its growth cycle [6] - The industry is currently focused on infrastructure development (LLMs and data centers), similar to the early stages of the wireless industry, with the application layer expected to emerge later [8] - The firm draws a parallel to Global Crossing, a company that invested billions in laying physical cable but ultimately went bankrupt, highlighting the risk of overspending on infrastructure without immediate returns [9] Future Opportunities in AI - The industry anticipates a new wave of opportunities as companies like JP Morgan and Goldman Sachs leverage AI to improve their business strategies [10][11] - The focus is shifting towards security around AI and proof of human interaction, indicating a growing need for solutions in these areas [10]