Concerns are mounting among investors regarding a recent sell-off in technology stocks, which some fear may signal the end of the AI boom. However, Raheel Siddiqui, a senior investment strategist at Neuberger Berman, maintains a more optimistic outlook. Siddiqui, representing a firm that manages approximately $460 billion in assets, believes that while the current market retreat could persist in the short term, it presents an ideal buying opportunity for those looking to invest in the sector.
In an interview with Business Insider, Siddiqui emphasized that the recent decline is primarily due to falling liquidity rather than any inherent weaknesses in the companies driving the AI revolution. He projects continued strong earnings for these firms, with conditions expected to improve as fiscal and monetary stimulus begins to take effect in 2026. “I think there’s more risk, maybe the next two to three weeks, and then that would be a great opportunity to buy,” Siddiqui stated, highlighting the liquidity-driven nature of the current environment.
He further explained that while the growth of fundamental earnings is a critical aspect of the technology sector, the valuation of tech stocks is influenced more by macroeconomic factors. This suggests that the recent downturn is largely a response to external variables rather than a reflection of individual companies’ financial health. Siddiqui is confident that once these macroeconomic conditions improve, tech stocks are poised for a resurgence.
Market analysts have pointed to the recent decline in cryptocurrency values as a potential contributor to the stock market slump. The relationship between falling crypto prices and stock values has garnered attention, with some experts suggesting that investors may be liquidating stock positions to maintain cash flows amid margin calls triggered by crypto losses. Ed Yardeni, founder of Yardeni Research, noted that the ongoing drop in Bitcoin’s price has correlated with declines in technology stocks, specifically referencing the TQQQ, an ETF designed to triple the daily performance of the Nasdaq-100 Index.
While looking ahead, Siddiqui reminded investors that 2026 is a midterm election year, which historically brings increased volatility and significant fluctuations in the S&P 500. Despite these potential challenges, he remains bullish on the technology sector.
For those interested in gaining exposure to tech stocks, he pointed out several funds, including the Vanguard Information Technology ETF (VGT) and the Technology Select Sector SPDR Fund (XLK), as potential options for investment. As the market continues to navigate these turbulent times, cautious optimism appears to be the theme among strategists like Siddiqui.
