Whoa! Tom Lee has made a clear prediction that later this year, the US stock market will face a bear market shakeout targeting specific sectors. He pointed out that the market will soon encounter three major pressures: typical mid-term seasonal volatility, an unrelenting shortage of oil products, and the wave of stock unlocks following IPOs from giants like SpaceX and OpenAI. This massive influx of shares will create an oversupply, putting pressure on the broader market. Many are worried about a crash among tech giants, but Tom Lee believes the bear market for the seven major tech giants (MAG 7) and software stocks is already over. The next big drop will likely hit stocks with overinflated valuations, those impacted by the unlock wave, or those affected by energy shortages. As for the semiconductor and AI supply chain, he thinks it hasn’t fully entered bubble territory yet. For example, NVIDIA’s current P/E ratio of 19x still offers decent value, but some companies within the ecosystem are indeed overpriced. Right now, capital will only flock to core assets that truly control scarce resources.