Finance
Deutsche bank upgrades US and European tech sector, turns 'overweight' on software
Published by Global Banking & Finance Review®
Posted on March 10, 2026
1 min readLast updated: March 10, 2026
Quick Summary
Deutsche Bank upgraded its rating on U.S. and European tech to “neutral” from “underweight” and raised software coverage to “overweight,” citing resilient earnings, benign AI impact forecasts for 2026, and attractive valuations after a steep sector pullback.
Deutsche Bank Upgrades US, European Tech Sectors and Turns Overweight on Software
Deutsche Bank's Strategic Shift in Technology and Software Sectors
Upgrade of U.S. and European Technology Sectors
March 10 (Reuters) - Deutsche Bank upgraded the U.S. and European technology sector to "neutral" from "underweight" on Tuesday and turned "overweight" on software, saying the months-long rout sparked by fears of AI-driven disruption has likely run its course.
Background: Recent Selloff and Market Concerns
The shift comes after a sharp global software selloff over the past six months that left valuations at historically thin premiums and fueled concerns the industry would struggle to outgrow the broader market.
Resilience in Earnings and AI Impact Outlook
Evidence now points the other way, Deutsche Bank said, with earnings proving resilient and no major company expecting a negative revenue impact from AI in 2026.
Opportunities in Germany's Cyclical Sectors
The brokerage also highlighted opportunities in Germany's cyclical sectors including industrials and construction materials, which have slid in recent days despite what it sees as intact support from Berlin's fiscal push.
(Reporting by Rashika Singh in Bengaluru; Editing by Sriraj Kalluvila)
Key Takeaways
- •Software valuations have hit historic lows, with forward P/Es collapsing amid AI disruption fears, creating potential entry points for resilient firms with durable advantages (ubs.com)
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References
Frequently Asked Questions about Deutsche Bank upgrades US and European tech sector, turns 'overweight' on software
1Why did Deutsche Bank upgrade the US and European tech sectors?
Deutsche Bank upgraded the US and European tech sectors due to resilient earnings and evidence that AI-driven disruption fears have likely run their course.
2What is Deutsche Bank's view on the software sector?
Deutsche Bank turned overweight on software, citing that no major company expects a negative AI revenue impact in 2026 and valuations are now attractive.
