Deutsche Bank upgrades US technology stocks after selloff

Business · First reported 2 Nov, 08:08 · Updated 08:22

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Deutsche Bank raised its US technology rating to overweight, saying the recent decline may offer a buying opportunity and that much AI-related risk is reflected in share prices. The bank’s view comes after a sharp tech selloff and remains subject to risks including weaker profits or market shocks.

Deutsche Bank upgraded US technology stocks to overweight, reversing a downgrade made about three weeks earlier.
The Nasdaq 100 lost more than $2 trillion in value in October, while technology and mega-cap growth stocks fell about 11% over three weeks as the rest of the S&P 500 rose nearly 6%.
The bank said the decline had made valuations more attractive and cited past tech recoveries, while also flagging risks such as further market shocks.

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Key facts

Rating: Deutsche Bank upgraded US technology stocks to overweight.
Nasdaq 100 decline: More than $2 trillion in market value was wiped off in October.
Three-week performance: Tech and mega-cap growth stocks fell about 11%; the rest of the S&P 500 rose nearly 6%.
Past rotations: The bank said previous rotations back into tech brought average gains of about 32% and roughly 30 percentage points of outperformance versus the rest of the S&P 500.