Fundstrat co-founder and managing partner Tom Lee says the broader stock market could face several key challenges over the next few months, even as he remains optimistic on the long-term outlook for artificial intelligence (AI) and technology stocks.

In a new CNBC interview, Lee says investors are likely to focus on how the Federal Reserve responds to inflation risks, rising yields, and a wave of upcoming initial public offerings (IPOs).

“I do think three tests are emerging for the stock market. One is of course how is the Fed going to react to both the underlying inflation risks. The second is the market doesn’t really like when inflation is a concern and yields are rising and I do think we are seeing it now in PPI.

I think there is in the pipeline a lot of inflation not structural but just inflation shock but also energy shortage. And the third of course is you know I think we’re we have a lot of IPO and that’s a lot of supply.

So I think we’re going to face some tests later this summer. So I think the risk-reward is still great for tech, but I’m not sure about the broader market.”

Lee says he remains bullish on technology over the long term due to the United States’ leadership in AI, but warned that inflation concerns, rising yields and increased market supply from IPOs could create pressure for the broader stock market in the months ahead.