Hightower's Stephanie Link Advocates "Buy the Dips" Strategy Amid AI-Driven Market Volatility

This analysis is based on the CNBC Squawk Box interview [1] with Stephanie Link, Chief Investment Strategist at Hightower Advisors, published on November 7, 2025, where she advocated for investors to “buy the dips” amid recent market volatility.

The market environment surrounding Link’s “buy the dips” recommendation shows significant stress across major indices. On November 6, 2025, the S&P 500 declined 0.99% to 6,720.32, while the NASDAQ experienced a steeper drop of 1.74% to 23,053.99 [0]. The Russell 2000 small-cap index also fell 1.68% to 2,418.82, indicating broad-based selling pressure beyond just large-cap technology stocks [0].

Sector performance reveals particular weakness in economically sensitive areas, with Consumer Cyclical (-2.13%), Industrials (-2.28%), and Financial Services (-1.82%) posting the largest declines [0]. Only Healthcare (+0.45%) and Real Estate (+0.09%) managed positive returns, suggesting a defensive rotation amid the volatility [0].

The technology sector, particularly AI-related stocks, faced intensified pressure coinciding with Link’s appearance. NVIDIA (NVDA), the bellwether for AI sentiment, dropped 3.65% to $188.08 on significantly elevated trading volume of 219.14 million shares, well above its average of 178.93 million [0]. This decline occurred against the backdrop of escalating US-China AI chip tensions, where the United States blocked Nvidia’s advanced Blackwell chip sales to China, prompting China to ban foreign AI chips from state-funded data centers [1].

The AI sector’s vulnerability reflects broader concerns about:

• Valuation Pressures
  : Mega-cap technology stocks trading above 25x earnings multiples [2]
• Supply Chain Disruptions
  : AI chip component shortages and export restrictions [1]
• Regulatory Uncertainty
  : Potential for further technology restrictions between major powers [1]

Link’s contrarian recommendation aligns with Hightower Advisors’ broader investment thesis, which anticipates continued growth in AI-related corporate capital expenditure of 15-20% annually [2]. The firm projects semiconductor demand will expand beyond $200 billion in AI-specific infrastructure, suggesting current volatility may represent an overreaction to short-term headwinds [2].

The elevated trading volumes in QQQ (68.56M vs avg 52.70M) and NVDA (219.14M vs avg 178.93M) indicate increased institutional activity during the decline, potentially suggesting professional investors are positioning for a recovery [0].

1. Geopolitical-Technology Nexus
   : The US-China AI chip restrictions represent a new form of economic warfare that directly impacts market valuations and investment strategies, creating both risks and opportunities for strategic positioning [1].

2. Valuation-Fundamental Disconnect
   : Despite premium valuations (NVDA P/E: 53.58x), continued revenue and free cash flow growth in AI companies may justify current pricing levels, though this creates heightened volatility risk [0][2].

3. Sector Rotation Patterns
   : The defensive positioning into Healthcare and Real Estate during tech weakness suggests institutional investors are maintaining market exposure while reducing risk exposure [0].

1. AI Investment Cycle Maturity
   : The current volatility may signal the transition from AI’s initial hype phase to a more mature investment cycle where fundamentals and execution become more critical than narrative alone [2].

2. Market Structure Evolution
   : The concentration risk in mega-cap technology stocks has created market dynamics where a few names can drive overall index performance, amplifying the impact of sector-specific news [0].

1. AI Bubble Vulnerability
   : The extreme concentration in mega-cap technology stocks and elevated valuations suggests vulnerability to further corrections, particularly if earnings growth disappoints [0].

2. Geopolitical Escalation Risk
   : The US-China technology decoupling represents a material risk that could disrupt global supply chains and corporate earnings beyond current expectations [1].

3. Technical Market Weakness
   : Major indices trading below recent highs with increasing volatility suggests potential for further downside before stabilization occurs [0].

4. Regulatory Uncertainty
   : Additional restrictions on AI technology or chip exports could create unexpected headwinds for the sector [1].

1. Strategic Entry Points
   : The current volatility may provide attractive entry points for long-term investors with appropriate risk tolerance, particularly in companies with strong fundamentals and diversified revenue streams [2].

2. Sector Diversification
   : The rotation into defensive sectors highlights opportunities for portfolio rebalancing while maintaining growth exposure [0].

3. AI Infrastructure Plays
   : Beyond chip manufacturers, companies involved in AI infrastructure, software, and applications may offer better risk-adjusted returns [2].

• Major indices experienced significant declines on November 6, 2025, with the NASDAQ leading losses at -1.74% [0]
• NVIDIA dropped 3.65% on elevated volume, serving as a key AI sentiment indicator [0]
• Defensive sectors (Healthcare +0.45%, Real Estate +0.09%) outperformed during the volatility [0]

• Hightower Advisors projects 15-20% annual growth in AI-related capital expenditure [2]
• Semiconductor demand expected to exceed $200 billion in AI-specific infrastructure [2]
• US-China AI chip tensions represent both near-term volatility catalyst and long-term structural shift [1]

• Link’s recommendation lacks specific entry points, position sizing, or timing guidance [1]
• Elevated trading volumes suggest institutional positioning during the decline [0]
• The strategy requires careful risk management given current valuation levels [0]

The “buy the dips” strategy advocated by Link appears to be a contrarian play on market overreaction to AI-related headwinds, supported by strong long-term fundamentals in the technology sector. However, the unprecedented nature of US-China technology tensions and elevated valuations require careful risk management and gradual position scaling rather than aggressive lump-sum investments.