Tech stocks are not like the broader market. They move faster, swing harder, and often scare people out right before the biggest gains.

When people talk about compounding, they usually imagine a smooth upward curve. But in tech, compounding looks very different: sharp drawdowns followed by explosive recoveries. That’s why many investors miss out—they get shaken out during the dips.

This volatility is not a bug, it’s a feature. It gives us the chance to buy innovative companies—those driving AI, cloud, semiconductors—at prices that don’t last long. The same mood swings that create fear also create opportunity.

The key is simple: stick with high-quality tech companies, even when they fall 20–30% in a correction. These are not signs of failure, but the normal rhythm of innovation cycles.

This year has shown what happens when you hold on: infrastructure, AI, and chips have delivered outsized returns. And when volatility returns—and it will—it’s not the time to panic, but to reload. In tech, drawdowns are the entry ticket to long-term compounding.