Deutsche Bank Upgrades Tech and Software Sector Ratings

Deutsche Bank AG has upgraded the technology sector in the United States and Europe to neutral from underweight, signaling that the months-long market decline driven by artificial intelligence fears has likely concluded. The brokerage also shifted to an overweight rating on software, noting that valuations have reached historically thin premiums following a significant global selloff over the past half-year.

While investors previously worried that AI-driven disruption would cause the software industry to underperform the broader market, recent data suggests otherwise. Analysts noted that corporate earnings have remained resilient throughout the transition. Furthermore, no major companies currently anticipate a negative impact on their 2026 revenue due to the rise of artificial intelligence.