The Rebound in Tech Stocks: Is Now the Time to Buy the Dip?

The tech sector has long been a bellwether for innovation and investor sentiment, and 2026 is no exception. As artificial intelligence (AI) transitions from experimental to operational dominance, and edge computing reshapes infrastructure paradigms, the question looms: Is now the time to "buy the dip" in tech stocks? With market volatility and macroeconomic uncertainties persisting, this analysis evaluates sector momentum, expert predictions, and strategic positioning to determine whether the current pullback presents a buying opportunity.

Sector Momentum: AI, Inference, and Edge Computing Drive Growth

The tech sector's momentum in 2026 is anchored by AI's rapid evolution. According to a report, 64% of organizations are now investing in AI or machine learning, with agentic AI-a subset focused on autonomous decision-making-projected to grow at a 65% annual rate. This trend is underscored by venture capital inflows: over $2.8 billion was allocated to agentic AI startups in the first half of 2025.

Inference, the process of deploying trained AI models, has emerged as a critical cost driver. Enterprises are now spending more on inference infrastructure than on training, with 78% expected to rely on Inference-as-a-Service by 2026. Edge computing is amplifying this shift, as low-latency processing becomes essential for applications like AR/VR and autonomous systems. By 2030, 50% of AI inference workloads are projected to occur at the edge, reducing cloud dependency and enhancing privacy.

The "Buy the Dip" Debate: Historical Returns vs. Macro Risks

Historically, the "buy the dip" strategy has yielded strong returns in the tech sector. Data from Financial Content indicates that investors who bought every down day in the Nasdaq 100 in 2025 saw a 32% return. Fundstrat's Mark Newton argues that current tech stock valuations remain attractive, noting that key support levels have not been broken. Similarly, Neuberger Berman's Raheel Siddiqui frames the recent pullback as liquidity-driven rather than fundamental, predicting improved conditions in 2026.

However, caution is warranted. The Federal Reserve's rate cuts, while supportive, coexist with inflationary pressures and geopolitical tensions. A crypto-driven selloff in late 2025 has also spillovered into tech stocks, as margin calls force investors to liquidate positions. Siddiqui warns that 2026's midterm election year could amplify volatility, with historical precedents showing double-digit declines in the S&P 500 during such periods.

Strategic Positioning: Agentic AI and Edge Computing as Anchors

For investors seeking to capitalize on 2026's tech trends, strategic positioning is critical. Agentic AI, which enables autonomous task execution, is poised to redefine enterprise workflows. Gartner predicts that 33% of enterprise software applications will incorporate agentic AI by 2028, up from less than 1% in 2024. This growth necessitates investments in microservice-based architectures and governance frameworks to manage "agent sprawl" as token usage scales. According to Deloitte, enterprises must prepare for this shift.

Edge computing complements agentic AI by enabling real-time decision-making. IDC highlights hybrid architectures-combining edge and cloud-as a key trend, optimizing performance while reducing energy consumption. For example, BMW's integration of autonomous vehicles into production routes and Amazon's DeepFleet AI illustrate the tangible ROI achievable through edge-optimized AI.

Risk Management and Governance: The New Imperative

As AI adoption accelerates, governance and security are becoming non-negotiable. By 2026, inference governance and explainability controls are expected to be mandatory, with enterprises prioritizing auditability and compliance. This shift underscores the importance of investing in AI-ready data infrastructure and DataOps frameworks.

Conclusion: A Calculated Opportunity

The tech sector's 2026 trajectory is defined by transformative AI adoption and infrastructure innovation. While the "buy the dip" strategy has historically rewarded investors, the current environment demands a balanced approach. Agentic AI and edge computing offer compelling long-term potential, but risks such as regulatory shifts and macroeconomic volatility require disciplined risk management. For investors with a medium to long-term horizon, selectively buying dips in fundamentally strong tech stocks-particularly those aligned with AI and edge trends-could position portfolios to capitalize on the sector's next phase of growth.