📉 The Nasdaq lost more than $2 trillion in October. Deutsche Bank now says the sell-off has gone too far
Technology stocks have had a very weak month. Concerns about massive AI spending have dragged down valuations across the sector, and the Nasdaq 100 alone lost more than $2 trillion in market value in October.
But now Deutsche Bank has changed its view and raised U.S. technology stocks to overweight again.
-The Nasdaq 100 is down roughly 8% from its peak
-Technology stocks have had their worst month since March 2025
-Deutsche Bank says much of the AI risk is already priced in
-The Nasdaq fell nearly 3% on Friday alone
What we find especially interesting now is that most companies’ results aren’t bad. In fact, 82% of the S&P 500 companies that have reported so far have beaten earnings expectations. The market is mainly focused on whether the massive AI investments will really pay off. We’re more inclined to use the current correction to look for quality companies at better prices than to write off the entire technology sector.
What about you? Or are you waiting for an even bigger drop?