Investors looking for bargains in technology may want to learn from the way long-time tech investors have handled the turmoil — by using pullbacks such as the August drop on the Nasdaq index to grab their favorite names at bargain prices. While 2023 has so far been a mirror of 2022 with the tech stocks thriving as excitement around artificial intelligence grows, this rally was met with some resistance in August. In August, the Nasdaq Composite index and Nasdaq 100 index, which are dominated by tech stocks and have been since December 20,22. .NDX mountain Nasdaq 100 over the last one month. As tech stocks prices fell, portfolio managers took advantage of the opportunity to buy some AI favorites. They say that despite the volatility expected to continue into the fourth quarter, there is no better time for investors to take advantage of opportunities. Paul Meeks of Independent Solutions Wealth Management, who has been following the group for over 30 years, said, “If there is a dip in prices, I will buy.” “I do not think we will have a tech plunge. But, except for maybe a few high-fliers we’ve seen most of the gains in tech this year.” August anxiety? Many veteran technology investors were not surprised by the pullback last month. Meeks, who viewed the technology sector’s recent run as justified, had been preparing for a pullback for months. Meeks had been preparing for a pullback and consolidation in the sector, despite stellar performance through July. This was despite Nvidia’s second consecutive blowout quarter and better-than-feared results. Marvell Technology, a popular AI-related company, and Advanced Micro Devices, both of which lost more than 10% each, were the biggest August losers. Meta Platforms fell 7% while Apple dropped more than 4%. Fortinet, which fell 23%, was the Nasdaq 100’s worst performing stock. Despite the August downtrend, some major AI winners managed to beat it. Nvidia, for instance, rose 5.6% despite the Nasdaq Composite dropping 1.6%. Gene Munster of Deepwater Asset Management, who has been investing in or analyzing the technology sector since the dot.com boom, says investors may be concerned that the trade has reached its peak. He said that investors are anxious about the current situation. It’s a psychological game. Investors need to know that the numbers for September [to] will give them some confidence that positive things can happen. Building small positions During the August pullback Meeks purchased some of his favorite AI names. Investors who want to build up stakes in popular technology stocks can use pullbacks as an opportunity to start small positions that they can gradually grow. His list of companies includes names that he has been putting money on for most of the year. These include Marvell, Broadcom, Taiwan Semiconductor, and Advanced Micro Devices. He also keeps an eye on Synopsys, Cadence Design Systems and the software business during periods of weakness. Munster took advantage of August’s volatility by buying some Etsy shares. He believes that Wall Street, while not the dominant player in AI arms race is underestimating the benefits of AI in fostering creativity. AXS Investments’ CEO Greg Bassuk saw an opportunity last month to invest in companies that he believes will benefit from AI on a long-term basis. Adobe is one of them, given its large customer base and the opportunity to revolutionize content by using AI. Salesforce, the leader in CRM solutions, is another AI beneficiary, according to him. Broadcom shares fell last week, despite better than expected results. Investors seemed to pay more attention to the company’s forward guidance. Bassuk says that Broadcom will still benefit from AI in the long run as demand for wireless connectivity solutions and networking solutions grows. Bassuk says that even the biggest tech companies will experience ups anddowns for the remainder of the year. He said that each of the companies had periods where they were down by multiple percentage points. “These are the kinds of dips we recommend that [investors] seriously consider as a buying opportunity. “