Foreign stocks: “Get used to lower tech valuations”
Tech companies are once again dominating trading in foreign stocks on the German Stock Exchange. However, there is growing interest in whether the billions invested in AI are actually paying off.
May 7, 2026. FRANKFURT (Deutsche Börse). The Nasdaq 100 continues to reach new heights, and concerns about an AI bubble have all but vanished. This is also reflected in trading volumes for foreign stocks on the Deutsche Börse. South Korean semiconductor manufacturer SK Hynix tops the list for April. It is followed by U.S. names such as Microsoft, Nvidia, Amazon, Alphabet, Intel, Micron, and Apple. Oil and gas companies like Shell, BP, Equinor, and Petrobras, which were still so important in March, have slipped down the list. Mining companies that previously generated strong trading volumes, such as Pan American Silver, no longer play a major role either.
However, not all of the Magnificent Seven managed to impress with their first-quarter results. Meta (US30303M1027) came under selling pressure, as did Microsoft (US5949181045). “The Magnificent Seven are no longer a sure thing,” notes Stefan Waldhauser, a tech expert and investor.
- Learn more: high-tech-investing.de
With the exception of Alphabet (US02079K3059), the market reaction was negative. Yet, at first glance, the results appeared to have exceeded expectations. “Investments, which are becoming increasingly expensive due to resource-intensive AI—now totaling $800 billion for 2026 and estimated at over $1 trillion for 2027—are now scaring off investors.”
“A New Kind of Heavy Industry”
According to Waldhauser, investors should get used to lower valuations for the leading cloud companies—the hyperscalers—despite their high growth rates. For years, he notes, the valuation premium has been justified by their relatively low-capital-intensive business models. In the future, however, sharply rising depreciation and amortization expenses will weigh on what have been, until now, generous margins. “The hyperscalers are becoming a new kind of heavy industry, which, based on experience, is typically assigned lower valuation multiples.” Investors should therefore not be tempted to buy too hastily just because the P/E ratio for companies like Microsoft or Meta is now well below the historical average, making the stocks appear cheap at first glance.
Stefan Waldhauser
Still plenty of recommendations
However, many banks continue to recommend buying these stocks. For Amazon, Microsoft, and Meta, for example, UBS, Goldman Sachs, Jefferies & Company, RBC Capital, and Barclays Capital expect further price increases and recommend buying. Alphabet and Apple also have neutral ratings, such as those from UBS and Jefferies.
“Opportunities beyond the major players”
“AI is no longer a trend that ‘lifts all boats equally,’” explains Ann-Katrin Petersen of BlackRock. The markets are differentiating more sharply based on how AI is changing business models. And they are specifically looking for evidence that the record-high investments in data centers, chips, and human capital are paying off. However, the investment boom underscores the dynamically growing demand for AI infrastructure and particularly benefits the semiconductor and hardware industries in Taiwan and South Korea. BlackRock favors U.S. and emerging market stocks. “Active investors can also capitalize on opportunities beyond the key players in AI expansion—such as early AI adopters in the financial sector or in select areas of healthcare like imaging, diagnostics, and documentation.”
Freeing Up Cash for the SpaceX IPO
Waldhauser also points out another factor: the uncertainty surrounding the initial public offering of Elon Musk’s space company SpaceX, expected this summer. “It’s safe to assume that institutional investors will sell off highly liquid Mag7 stocks—and Tesla in particular—in the run-up to the IPO in order to free up capital for SpaceX,” he says. Hardly any fund manager can afford not to have one of the ten most valuable companies—as predicted—in their portfolio after the IPO. “SpaceX’s success is almost a foregone conclusion thanks to tailored new stock market rules.”
- Mehr dazu: hightechinvesting.com
By Anna-Maria Borse, May 7, 2026 © Deutsche Börse AG
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Anna-Maria Borse is a finance and business editor specializing in financial markets, the stock market, and economic issues.
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