Nasdaq-100 9% off peak: Zscaler, Meta called dip buys

The Nasdaq-100's 9% pullback from its peak reflects growing investor skepticism about the sustainability of the AI spending boom, with semiconductor giants Nvidia and Micron among the hardest-hit members. The index had nearly tripled from its 2022 bear market low before this test, and history suggests the broader market has always recovered to new highs over the long term, framing the decline as a potential buying opportunity.

Zscaler's appeal in this environment rests on its zero trust architecture, which treats every login as hostile and limits user access to only necessary applications. The company added AI-specific tools like AI Broker and Endpoint AI Security earlier this year, and its fiscal 2026 revenue grew 25% to $3.35 billion, with a price-to-sales ratio of 11.3 that is below competitors CrowdStrike and Palo Alto Networks. Meta's case centers on AI-driven engagement and its new Muse agent, which has already attracted over 10 million users; Zuckerberg said engagement hit record highs on Facebook and Instagram in the third quarter, and he believes Muse could eventually serve billions of people, potentially expanding Meta's addressable market beyond social media. Meta's stock is down 20% from its peak and trades at a P/E of 20.9 versus the Nasdaq-100's 29.9, which the author frames as another long-term entry point.