Analysis of Reddit User’s $35k AI Dip Investment (AVGO, SPY, CLS, CRWV) Amid Sector Sell-Off

This analysis is based on a Reddit post [1] published December 13, 2025, where a user sought feedback on a $35k “buy the AI dip” investment. The “dip” was part of a broader AI sector sell-off triggered by two critical events: Oracle’s Q2 earnings miss and Broadcom’s AI sales outlook falling short of investor expectations [2][3]. Market data [0] shows the impact was severe for AI-exposed stocks:

• AVGO (Broadcom) dropped 11.44% on 3.6x its average daily volume (84.02M vs. 23.08M), indicating strong institutional selling pressure.
• CLS (Celestica) and CRWV (CoreWeave) fell 12.80% and 10.10% respectively, while the broader market (SPY) declined only 1.08%, reflecting AI-specific headwinds.
• The technology sector underperformed by 1.69%, confirming the sell-off was driven by AI re-rating from “growth-at-any-cost” to “profitability focus” [3]. Reddit comments mirrored this dynamic: most (42 upvotes) remained long-term bullish on AI semiconductors/data centers but expected 2-3 months of rough short-term performance, while 115 upvotes criticized the user for excluding NVDA (a top AI semiconductor leader) from their portfolio.

1. Institutional-Driven Sell-Off
   : The high trading volume for AVGO [0] suggests the sell-off was led by institutional investors re-pricing AI stocks, rather than retail panic, indicating a more sustained short-term correction rather than a temporary dip.
2. Sentiment Divergence
   : A clear split exists between short-term market action (sell-off) and long-term growth expectations (bullish 12-18 months), highlighting potential timing misalignment in the user’s “dip-buying” strategy.
3. Portfolio Gap
   : The user’s exclusion of NVDA, a dominant AI semiconductor player, was a common critique, suggesting the portfolio is concentrated in less established AI infrastructure names relative to the sector leader.

• Short-Term Volatility
  : As noted by commenters, AI stocks may face 2-3 months of further downside amid profit-taking and re-pricing [1].
• AI Profitability Concerns
  : Broadcom’s margin pressures and Oracle’s sales miss highlight the gap between AI adoption and near-term profitability, which could delay investor confidence [2][3].
• Data Center Bottlenecks
  : Power constraints and buildout delays may slow AI infrastructure spending faster than expected [3].
• Concentration Risk
  : The investment is heavily focused on AI-exposed stocks, making it vulnerable to sector-specific headwinds (SPY provides partial but limited broader market diversification).

• Long-Term AI Growth
  : Commenters and market fundamentals [3] support 12-18 months of bullishness for AI semiconductors and data centers, driven by ongoing adoption.
• Entry Point Potential
  : A deeper short-term pullback could create a more favorable entry point for long-term investors, as suggested by commenters advising to buy when bearish sentiment peaks [1].
• Broader Market Exposure
  : SPY in the portfolio helps mitigate some sector concentration risk by tying returns to overall market performance.

The user’s investment was executed during an AI sector sell-off triggered by Oracle and Broadcom’s disappointing results, with AI-exposed stocks experiencing double-digit declines. Reddit sentiment is mixed: short-term bearish on price action but long-term bullish on AI’s growth trajectory. Critical missing information includes the user’s exact entry prices, call option expiration/strike details, and risk tolerance. Monitoring AI profitability metrics, data center spending trends, and NVDA’s performance will be key to assessing the investment’s outcome.

(Inline citations are numbered [0]-[3]; full details in the citations section below.)