Mark Newton, an analyst at a fund affiliated with Tom Lee, said current conditions favor buying technology stocks on dips, while investors should diversify and prepare for sector rotation.

According to ChainCatcher, cross-asset volatility has increased notably over the past month, the S&P 500 has recently fallen about 6%, and technology stocks have pulled back significantly over the past week. Newton said the damage to technology stocks remains limited compared with their gains in September.

The market has seen sector rotation this year: energy initially gained nearly 40%, gains later spread to technology, and attention has now shifted to healthcare, which has reached record highs. Newton said investors should stay diversified and be ready for further shifts between sectors.

Steve Sosnick, chief strategist at Interactive Brokers, noted that investors may have significant exposure to technology stocks through S&P 500 index funds, even without actively investing in AI. He said sector rotation remains the main market trend, while expressing concern about continued declines in technology stocks and investors beginning to question returns on AI investments.