The tech selloff in 2025 has rattled markets — but also opened a huge opportunity for investors willing to stay calm, take some risks, and buy quality stocks at a discount.
Where We Are Now:
The S&P 500 is down about 5.9% this year, and the Roundhill Magnificent Seven ETF has plunged nearly 16%. Tech giants like Nvidia (NVDA), Alphabet (GOOGL), and Microsoft (MSFT) have pulled back — but analysts say the long-term innovation story remains strong.
🔹Short-Term Risks: Investors must be aware of two major risks:
- Trade wars impacting hardware-reliant firms
- Slowing economic growth weighing on broader markets
Still, if you can stomach volatility, this is a prime moment to build a tech portfolio with discounted, future-focused names.
How to Buy the Dip:
Experts like Daniel Flax of Neuberger Berman recommend sticking with companies leading in AI and cloud. “They’re not immune to headwinds,” he notes, “but their innovation creates real value for customers — and shareholders.”
Tactical Playbook: Ken Mahoney of Mahoney Asset Management suggests acting more like traders — setting buy orders near support levels and selling into rallies to “make volatility your friend.”
- Example: Microsoft bounced off $350 in April. Investors could set buy orders around $370 and sell if it approaches $400.
Use Moving Averages and Beta:
- Watch the 200-day SMA to confirm if a stock’s long-term trend remains positive.
- Check beta scores:
- Nvidia has a high beta of 1.97 (high volatility).
- Microsoft has a lower beta of 0.92 (less volatile and safer in rocky markets).
Diversify Within Tech: Mark Malek at Siebert warns against putting everything into volatile names like Nvidia. Mixing in steadier stocks like Microsoft can smooth out portfolio risk.
This rocky market isn’t just noise — it’s a rare buying window for smart investors. Focus on AI leaders, use tactical buying strategies, and diversify wisely to turn 2025’s volatility into opportunity.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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