Depressed tech valuations could offer entry point for investors, Goldman Sachs says
Published on April 7, 2026.
Gold Sachs has stated that low tech valuations could offer an entry point for investors due to prolonged underperformance by the technology sector. The firm highlighted several factors such as the release of the Chinese AI model DeepSeek, massive capex spending by U.S. hyperscalers and AI-driven disruption in the software industry. Despite these challenges, technology earnings have been strong, with the market consensus for IT earnings per share to grow by 44%, accounting for 87% of index growth in the first quarter. The impact of the Iran war on the sector's stability has also increased its attractiveness.
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