Recent declines in AI stocks such as Palantir, CoreWeave, and Robinhood have raised questions about whether it’s time to buy into these companies. Mark Malek, chief investment officer at Siebert Financial, believes that dips like this can be buying opportunities.
Malek states that significant declines rarely occur when there is nothing wrong with the company. He identifies two primary reasons why stocks go down: risks to the overall market or issues specific to each company. Despite concerns about AI spending being propped up by the economy, Malek maintains conviction in these companies.
He emphasizes that getting AI right is “do or die” for these companies, indicating a long-term future for the sector. However, he also warns of the risk that companies could slow their spending on AI at any time, potentially ending the rally.
According to Malek, having conviction in a stock when it’s expensive should increase its appeal when it’s cheap. This view suggests that investors who have faith in these companies during times of high prices will likely be more enthusiastic about them during downturns.
The recent example of Meta’s AI division downsizing has shown that the spending spigot can shut off quickly, serving as a warning to investors. Despite this, Wall Street remains bullish, with many strategists believing the long-term upside for the stock market outweighs near-term weakness, and suggesting buying dips, especially in tech.
Source: https://www.axios.com/2025/08/21/ai-stocks-nvidia-palantir