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Synthetic intelligence (AI) shares are falling, and most analysts are linking the dip to Broadcom’s (NASDAQ:AVGO) latest earnings, the place it retained its 2026 income steering at $100 billion. Buyers have been anticipating steering to extend relatively than stay secure. However there are different components too. OpenAI and Anthropic want to enter public markets with an preliminary public providing (IPO). Keep in mind that there’s a huge distinction between submitting for an IPO and launching one. Since SpaceX launched its IPO, the opposite two visionary firms are following.  

These IPOs could possibly be a purpose for AI fanatics pulling their cash out of AI chip shares, as they will lastly put money into AI fashions. Worth buyers is perhaps up for disappointment, seeing how a lot money AI software program firms are burning. The entire IPO episode might go both approach. It might overvalue the inventory, given the thrill round AI, or it might meet the destiny of the various tech shares that debuted within the 2021 tech bubble, solely to lose 80% of their worth in 2022.

We’re on the crossroads the place one resolution can flip your $7,000 Tax-Free Financial savings Account (TFSA) account into $70,000 or $3,500 within the subsequent decade.

The way to flip your 2026 TFSA contribution into $70,000

Tech shares are one of the best probability to transform $7,000 to $70,000. I’ve been bullish on Broadcom, and the latest 22% dip in June 2026 presents a shopping for alternative. As a result of the fundamentals haven’t modified. Its second-quarter income from customized AI accelerators and AI networking surged 143% year-over-year to $10.8 billion, above their guided vary. It’s anticipating a 200% year-over-year enhance to $16 billion within the third quarter of 2026.

The dip just isn’t due to fundamentals or valuations, as none of its purchasers have pulled out of their investments in AI infrastructure. It’s due to the worry of an rate of interest hike and the anticipation of Anthropic and OpenAI IPO presenting competitors to AI valuations. How these IPOs will fare is a black field. On one facet, buyers have chip firms exhibiting actual return on funding. On the opposite facet, AI purposes are but to justify the excessive capital funding.

The 2022 tech meltdown is feasible because the market is as soon as once more exhibiting indicators just like 2021. The tech shares are priced to perfection, many new IPOs are hitting the market to benefit from the hype, and rates of interest are low, however they may enhance. Institutional buyers are withdrawing cash on the slightest worry of a charge hike.

Broadcom continues to be a inventory value shopping for on the 20% dip, as it’ll profit from AI chips and the infrastructure software program that follows.

Investing in a technology ETF in 2026

You would additionally put money into the iShares NASDAQ 100 Index ETF (CAD-Hedged) (TSX:XQQ). The ETF will profit if the AI and SpaceX IPOs are an enormous hit, as they are going to debut on Nasdaq. The ETF has publicity to all large tech names and can provide you market-linked returns. Its 0.35% administration charge can be cost-effective contemplating the ETF’s means to generate a 20% common annual return in 10 years.

A $3,500 funding every in Broadcom and the Expertise ETF can assist you attain nearer to the $70,000 goal in the long run. The 2 can use the core-satellite technique, whereby the core represents a secure funding with assured market returns, just like the XQQ ETF, and the satellite tv for pc represents lively funding in shares with the flexibility to generate alpha.

Last ideas

The journey from $7,000 to $70,000 wants a 10-year compounded annual progress charge (CGAR) of 23%. The know-how ETF can provide a 15% CAGR and cut back draw back danger, whereas Broadcom can generate alpha to cowl the hole between the ETF CAGR and the required CAGR for 10 instances progress.