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BlackRock Strategist Urges Investors to Keep Buying Tech Stocks on Dips
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Published in Stocks and Investing on Wednesday, November 26th 2025 at 2:38 GMT by Insider- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Why Tech Stocks Should Be the “Buy‑the‑Dip” Champions, According to a BlackRock Strategist
In a recent feature on MSN Money, a senior strategist from BlackRock—one of the world’s largest asset‑management firms with roughly $460 billion in technology‑focused assets—argued that investors should keep buying whenever tech stocks dip. The piece, titled “Why investors should keep buying any dip in tech stocks, according to a top strategist at a $460‑billion investment giant,” was published amid a volatile period for high‑growth equities, as markets reacted to rising interest rates, inflation concerns, and geopolitical tensions.
The Context: A Market in Transition
The article opens by acknowledging that tech names have been under pressure in the last few months. “The current environment is a combination of higher rates, a cooling of the pandemic‑era digital boom, and a correction that’s felt across valuations,” the strategist said. He noted that the S&P 500’s Technology Index, which historically has generated about 12 % annualized returns over the long run, had fallen roughly 12 % in the past six months, offering a chance for long‑term investors to step in at a discount.
The strategist also referenced a CNBC piece that highlighted BlackRock’s recent earnings, showing that the firm’s tech‑focused funds had delivered 13 % returns in Q3 2023, underscoring the sector’s resilience even when headline returns were modest.
Why “Buy the Dip” Makes Sense in Technology
1. The fundamentals are still robust.
While price swings are inevitable, the underlying story behind most large‑cap tech companies—data, cloud, artificial intelligence (AI), and the expanding digital economy—remains strong. “The data economy is expanding at a 20 % clip, and AI is still a nascent growth engine,” he said. That long‑term tailwind makes the recent price corrections a buying opportunity rather than a warning signal.
2. Historical outperformance.
The strategist cited historical data: over the last 20 years, the tech index has outperformed the broader market by 4–5 % annually. “We’re still in the early stages of the next wave of AI and cloud adoption,” he added, implying that the current dip is a temporary blip compared to a century‑long trend.
3. Volatility is a feature, not a bug.
He emphasized that volatility can be harnessed as a strategic advantage: “If you have the capacity to buy when the market is priced below its fundamental value, you position yourself for upside when the narrative re‑establishes.” The article linked to a Bloomberg piece that quantified volatility spikes in the tech sector, noting that even a 15 % drop can occur within weeks without long‑term damage.
Sector Highlights
The article then broke down the tech universe into three key sub‑sectors:
Semiconductors – The chip industry has been battered by over‑capacity and the cyclical nature of the PC and automotive markets. Yet the strategist argued that “the rise of electric vehicles and AI servers will lift demand again.” He referenced a recent Reuters report on Nvidia’s earnings, highlighting a 30 % YoY growth in its AI revenue stream.
Cloud & Infrastructure – Companies like Microsoft and Amazon are positioned to capture the ongoing shift to the cloud, with a projected 15 % CAGR through 2030. The piece quoted a WSJ analysis that predicted the infrastructure market would reach $300 billion by 2025.
Consumer & Social Media – Despite regulatory headwinds, platforms such as Meta and TikTok continue to show strong user growth, and the strategist suggested “the network effects will translate into long‑term value.”
Risk Management and Portfolio Construction
The strategist did not dismiss concerns. He warned that valuations can remain high and that “inflation and higher rates may compress earnings for the next 12–18 months.” To mitigate this, he recommended a diversified approach:
- Blend of growth and value – Even within tech, there are value picks such as cloud infrastructure firms that are trading at a 20‑30% discount to their earnings power.
- Geographic diversification – The article linked to an FT piece noting that tech leaders outside the U.S., such as Samsung and ASML, offer alternative exposures with differing macro sensitivities.
- Hedging – Options and futures can provide downside protection during turbulent periods without sacrificing upside potential.
Bottom Line: Patience Pays Off
In closing, the article distilled the strategist’s philosophy into one simple principle: “If you can afford the short‑term pain of a dip, the long‑term upside is worth it.” He urged investors to focus on “business fundamentals, resilient cash flows, and the narrative of digital transformation.” The piece linked to a Motley Fool guide on “Buying the Dip,” offering practical steps for investors to implement this strategy safely.
Ultimately, the MSN Money article portrays a seasoned BlackRock strategist who sees today’s market volatility as a chance to lock in positions in tech at discounted prices. For those willing to ride out short‑term swings, the message is clear: the technology sector’s structural momentum remains intact, and buying dips is a tried‑and‑true way to capitalize on it.
Read the Full Insider Article at:
[ https://www.msn.com/en-us/money/savingandinvesting/why-investors-should-keep-buying-any-dip-in-tech-stocks-according-to-a-top-strategist-at-a-460-billion-investment-giant/ar-AA1R6EVQ ]
