To The Moon

📉 Tech Stocks: Buy the Dip or Run for the Exit?

The recent tech selloff has definitely shaken investor confidence. With KOSPI plunging 43.9%, ChiNext falling 27.9% and the Nasdaq dropping 10.2%, the question is no longer simply whether AI is the future.

The real question is:

How much of that future has already been priced into today’s stock valuations? 🤔

Some of the biggest AI-related names have been hit especially hard. Micron fell 41.2%, SanDisk 57.6% and SpaceX 52.6% according to the campaign figures. That kind of drawdown makes it tempting to either panic-sell or aggressively buy the dip.

Personally, I think neither extreme is the right approach.

I see this more as an AI valuation reset than the end of the AI cycle.

🤖 AI demand is still real — but expectations have changed

One of the biggest mistakes investors can make is confusing a correction in AI stocks with a collapse in AI adoption.

Companies are still spending enormous amounts on data centres, GPUs, networking equipment and memory. Hyperscalers continue to invest heavily in infrastructure because AI workloads are growing rapidly.

That means the fundamental AI story hasn’t suddenly disappeared.

However, the market is becoming much less willing to reward companies simply for having an “AI” story.

Investors now want to see:

Revenue → Earnings → Cash Flow → Sustainable Returns

rather than:

AI announcement → Stock goes up 🚀

This distinction could be extremely important over the next 12–24 months.

💰 The biggest risk may actually be expectations

Take $NVIDIA(NVDA)$  as an example.

NVIDIA remains one of the strongest beneficiaries of the AI infrastructure boom. Its competitive position, ecosystem and demand for accelerated computing are extremely difficult to ignore.

But even an exceptional company can become a bad investment if investors pay an excessive price for future growth.

If the market expects 50% growth and a company delivers 40%, the business may still be performing incredibly well — but the stock can fall because expectations were even higher.

That is what I think we’re increasingly seeing across the tech sector.

The problem isn’t necessarily that AI growth is slowing to zero. The problem is that investors may have priced in perfection.

🧠 What about the AI bubble?

I don’t think we can completely dismiss the bubble argument.

There are definitely areas where valuations appear disconnected from near-term fundamentals. Some companies have rallied massively based on future AI potential despite limited profitability or cash flow.

That part of the market deserves caution.

But I also don’t believe this is comparable to a situation where the underlying technology has no economic value.

The internet eventually changed the world, even though many dot-com companies went bankrupt.

Similarly, AI can become a transformative technology while many individual AI stocks still turn out to be terrible investments.

That’s why stock selection matters more now.

📊 So… buy the dip?

For me, the answer is yes — but selectively.

I wouldn’t deploy all my capital just because a stock has fallen 30–50%.

A stock falling 50% doesn’t automatically mean it is cheap. It could simply mean the market previously overvalued it.

Instead, I’d divide the market into three groups:

🟢 High-quality AI leaders:

Strong balance sheets, dominant market positions, real earnings and sustainable AI demand. These are the names I’d be most comfortable accumulating during major corrections.

🟡 High-growth but expensive companies:

Potentially attractive, but I would wait for better valuations or buy gradually rather than going all-in.

🔴 Speculative AI names:

Companies where the investment thesis depends heavily on future growth rather than current fundamentals. These could fall much further if sentiment deteriorates.

🔮 My outlook for the next 6–12 months

I expect volatility to remain extremely high.

I wouldn’t be surprised to see another 10–20% correction in parts of the technology sector even if the longer-term AI trend remains intact.

The market probably needs time to answer an important question:

Are billions of dollars of AI infrastructure spending actually going to generate enough profits to justify the investment?

If the answer is yes, today’s correction could eventually look like a major buying opportunity.

If AI monetisation disappoints while capex continues accelerating, however, valuations could compress much further.

So I’m cautiously bullish on technology, but increasingly selective.

I don’t think the AI story is dead.

I think the “buy anything with AI in its name” era is dead. 😂

For me, the strategy is simple:

Don’t chase the rally.

Don’t panic-sell the correction.

Buy quality when valuation and fundamentals finally meet.

The biggest opportunity may come when everyone is convinced the AI trade is over — but the underlying earnings growth is still accelerating.

🔥 My verdict: Buy the dip, but don’t buy the hype.

What do you think — is this a healthy reset before the next leg higher, or are we only halfway through the AI bubble unwind? 👇

#TechStocksBuytheDiporRunfortheExit?