Tom Sosnoff isn’t convinced Monday’s rebound makes the biggest artificial intelligence (AI) chip stocks worth buying.
Speaking this morning with CNBC, the “tastytrade” founder said Nvidia, AMD, and Micron stocks have yet to retreat sufficiently to qualify as compelling oversold opportunities.
His warning comes after the Nasdaq lost 5.3% in October, its worst month since March 2025.
But his central concern goes beyond the index’s decline – weakness across individual stocks may still be masking how much markets depend on a handful of leaders.
Nvidia, AMD, and Micron could tank the index further
Sosnoff’s argument rests on an uncomfortable distinction: a market can contain plenty of battered stocks without its most influential companies looking sufficiently washed out.
Nvidia, AMD and Micron have continued to carry the broader market, he told CNBC, even as other stocks connected to the AI trade have struggled.
Those leaders “really haven’t sold off enough,” he said, to describe the market as “even remotely oversold.”
For investors, that creates a concentration problem.
Resilience among the AI leaders can cushion index losses while disguising weakness elsewhere.
If those same stocks subsequently lose support, the averages could face “additional pressure” even after many smaller constituents have already suffered substantial declines.
A rebound in the index, therefore, offers limited evidence that the broader market has now finished correcting.
How much could NVDA, AMD, and MU tumble
Tom Sosnoff said he would want to see something between a 25% and 35% sell-off in some of the biggest names before considering them meaningfully oversold.
That range describes his threshold for interest; he did not present it as a forecast that Nvidia, AMD or Micron must fall by those amounts from Monday’s prices.
He was more receptive to Intel stock – saying its Friday decline made shares around $65–$66 look potentially interesting. Even there, he qualified his assessment: “I don’t know if it is” cheap.
That hesitation matters. A sharp decline establishes that investors have lowered their expectations, but it does not establish whether the remaining valuation adequately reflects business risks.
Sosnoff’s comments suggest selective interest in distressed prices, rather than an endorsement of buying semiconductor stocks indiscriminately.
Why Monday’s rebound makes the entry point harder
Despite his caution, Sosnoff stopped short of declaring that the broader market was headed for an immediate breakdown.
As long as its core leaders continue holding up, he said, the market is “probably okay.”
His more immediate objection concerned the entry point. A late Friday recovery followed by a higher Monday opening had reduced the appeal of buying into weakness.
He would have preferred a Friday close near the lows followed by another decline Monday, creating what he considered a more attractive opportunity.
Instead, he anticipated choppy trading and the possibility of oversold conditions emerging around midweek.
The practical takeaway is to distinguish confidence in the AI investment theme from confidence in today’s purchase price.
His remarks leave room for opportunities, while questioning whether the most popular chip stocks already offer them.
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