The recent massive pullback in semiconductor and AI-related stocks has certainly tested investor confidence. As valuations come under pressure and the market questions whether heavy AI investments can translate into sustainable profits, even companies with strong long-term potential are not spared. For my ARM holding, I see this correction as a time to reassess my investment thesis rather than react emotionally to short-term price movements.

My confidence in ARM comes from its position in the semiconductor ecosystem. Its energy-efficient chip architecture is widely used in mobile devices and is gaining relevance in areas such as data centers, cloud computing and AI infrastructure. As AI workloads expand beyond traditional data centers into edge devices and other applications, efficient computing becomes increasingly important. I believe ARM is well positioned to benefit from this long-term trend, although the pace of adoption and its ability to convert that opportunity into earnings still need to be monitored.

That said, I am not ignoring the risks. Semiconductor stocks have enjoyed strong expectations around AI growth, and high valuations leave little room for disappointment. If AI spending slows, competition intensifies or ARM's growth fails to meet expectations, the share price could face further pressure. This is why I prefer dollar-cost averaging (DCA) instead of committing a large amount at once. By spreading my purchases over time, I can manage my entry price more gradually and avoid the pressure of trying to predict the market bottom. However, DCA does not eliminate the risk of a prolonged decline, so I will continue reviewing the fundamentals and valuation.

For me, investing is about balancing conviction with discipline. I am willing to accumulate ARM gradually because I believe its long-term growth opportunities remain attractive, not simply because its share price has fallen. If the business thesis weakens materially, I must be prepared to change my view. Until then, I will stay patient, manage my position size and focus on long-term value rather than daily market noise. The goal is not to catch the exact bottom, but to build a position responsibly while remaining prepared for further volatility.

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