After a week when the chips (literally and figuratively) were down for global markets, especially with all eyes on the AI chip wars, we're asking the big question everyone is. Is now the time for investors to “buy the dip,” or are more falls coming?

This week's episode of Switzer Investing TV asks just that of Shaw and Partners’ expert market-watcher, Adam Dawes.

He didn’t shy away from the pun (to my delight). With so much riding on AI, are investors staring down another serving of AI chips and market dip, or is it time to refill the plate and get back in?

Dips are good, but be picky

Dawes’ view is bullish, at least selectively. “Any dip is good to buy because it shows resilience in the market,” he said, pointing to how beaten-up tech names like Xero and Life360 have started to bounce back. Dawes has been actively buying these names for clients, convinced that some of the hardest-hit tech stocks now offer solid opportunities.

But he warns against indiscriminate buying. “You have to be a little bit careful,” Dawes said, noting that while parts of the market are showing value, others such as lithium stocks and the big banks aren’t in the same position.

“Stock picking is going to be essential coming into Christmas and the Christmas rally,” he stressed

Will the dips continue into 2026?

Dawes’ view is bullish, at least selectively. “Any dip is good to buy because it shows resilience in the market,” he said, pointing to how beaten-up tech names like Xero and Life360 have started to bounce back. Dawes has been actively buying these names for clients, convinced that some of the hardest-hit tech stocks now offer solid opportunities.

But he warns against indiscriminate buying. “You have to be a little bit careful,” Dawes said, noting that while parts of the market are showing value, others—such as lithium stocks and the big banks aren’t in the same position. “Stock picking is going to be essential coming into Christmas and the Christmas rally,” he stressed.

Dawes' pick for the dip

Dawes highlighted Life360 (360) as a standout recovery story, saying it’s been “hit way too hard” and now looks well positioned. On the small-cap side, he flagged Echo IQ (EIQ), a speculative AI heart-health play, as another name worth watching, though he disclosed personal ownership and cautioned on the risks involved.

Peter ran through a list of analyst targets for stocks like Xero, WiseTech, and ZIP, with Dawes agreeing that some of the positivity is justified, but warning that in certain cases, market enthusiasm may be running ahead of fundamentals.

Both Peter and Dawes lean toward buying the dip, but only in carefully chosen sectors and stocks.

There’s no blanket endorsement of the entire market: the rotation theme is in play, with opportunities emerging outside the usual blue-chip names. The risk of further volatility and economic curveballs remains high, so the key is to stay disciplined, know your holdings, and avoid getting swept up in “Santa rally” hype without a plan.

It's always important to do your own research, but now more than ever. Pick your spots, don’t chase the crowd, and prepare for a rockier road into 2026, then potentially a stronger market further out, if history and the global strategists are right .