Deutsche Bank has upgraded its rating of the US and European technology sectors from "underweight" to "neutral," and has raised the software industry rating to "overweight."
The bank stated that in recent months, concerns about the potential impact of artificial intelligence on the software industry's business model have led to significant sell-offs.
However, the latest corporate earnings show that software companies' profitability remains stable.
Concerns About AI Impact Are Easing
Deutsche Bank noted that currently no major tech company expects AI to negatively impact revenue in 2026.
Analysts believe this indicates that AI technology is more likely to become a new growth driver for software companies rather than a substitution risk.
Opportunities in the German Cyclical Industries
The report also mentioned investment opportunities in Germany's cyclical industries.
With the support of fiscal policies, Germany's industrial and building materials sectors are expected to receive backing. Despite recent pullbacks in these sectors, their fundamentals remain attractive.
