Related insights
Turbulent times for technology. The global technology sector has been under sustained pressure since the start of the year with NASDAQ down more c.7% (as at 31 Mar). Two forces have driven this correction. Firstly, the conundrum of the “SaaS‑pocalypse” has exerted persistent selling pressure on the software segment of technology. Secondly, at the same time, escalating geopolitical tensions in the Middle East have triggered a broader risk‑off environment, prompting profit‑taking across global equities. Concerns around AI-driven disruption have led markets to question the durability of certain software business models, particularly narrow, pure‑play SaaS vendors. The central question for investors is whether the current market sell-off represents a short‑term valuation correction or the start of a deeper, more lasting de-rating for the technology sector—we are far more inclined to view it as the former.
Semiconductor and leading-edge thesis remain compelling; select opportunities in software. Despite recent volatility, the structural thesis underpinning the hardware and semiconductor segments of technology remains compelling and in many respects (or aspects), continues to strengthen. Ongoing AI adoption is driving outsized demand for compute with demand still materially outpacing both existing and planned supply. This imbalance is most clearly reflected in rising DRAM and NAND prices as industry capacity is increasingly reallocated towards high‑bandwidth memory required for AI workloads.
On the software side, the opportunity set is undeniably more nuanced. AI agents and automation tools pose headwinds to certain segments, particularly niche software with limited ecosystem depth and shallow integration. Importantly, this dynamic reflects dispersion rather than extinction. Mission‑critical, deeply integrated software platforms continue to see strong use cases and attractive long-term growth prospects.
Download the PDF to read the full report which includes coverage on Credit, FX, Rates, and Thematics.
Topic
The information published by DBS Bank Ltd. (company registration no.: 196800306E) (“DBS”) is for information only. It is based on information or opinions obtained from sources believed to be reliable (but which have not been independently verified by DBS, its related companies and affiliates (“DBS Group”)) and to the maximum extent permitted by law, DBS Group does not make any representation or warranty (express or implied) as to its accuracy, completeness, timeliness or correctness for any particular purpose. Opinions and estimates are subject to change without notice. The publication and distribution of the information does not constitute nor does it imply any form of endorsement by DBS Group of any person, entity, services or products described or appearing in the information. Any past performance, projection, forecast or simulation of results is not necessarily indicative of the future or likely performance of any investment or securities. Foreign exchange transactions involve risks. You should note that fluctuations in foreign exchange rates may result in losses. You may wish to seek your own independent financial, tax, or legal advice or make such independent investigations as you consider necessary or appropriate.
The information published is not and does not constitute or form part of any offer, recommendation, invitation or solicitation to subscribe to or to enter into any transaction; nor is it calculated to invite, nor does it permit the making of offers to the public to subscribe to or enter into any transaction in any jurisdiction or country in which such offer, recommendation, invitation or solicitation is not authorised or to any person to whom it is unlawful to make such offer, recommendation, invitation or solicitation or where such offer, recommendation, invitation or solicitation would be contrary to law or regulation or which would subject DBS Group to any registration requirement within such jurisdiction or country, and should not be viewed as such. Without prejudice to the generality of the foregoing, the information, services or products described or appearing in the information are not specifically intended for or specifically targeted at the public in any specific jurisdiction.
The information is the property of DBS and is protected by applicable intellectual property laws. No reproduction, transmission, sale, distribution, publication, broadcast, circulation, modification, dissemination, or commercial exploitation such information in any manner (including electronic, print or other media now known or hereafter developed) is permitted.
DBS Group and its respective directors, officers and/or employees may have positions or other interests in, and may effect transactions in securities mentioned and may also perform or seek to perform broking, investment banking and other banking or financial services to any persons or entities mentioned.
To the maximum extent permitted by law, DBS Group accepts no liability for any losses or damages (including direct, special, indirect, consequential, incidental or loss of profits) of any kind arising from or in connection with any reliance and/or use of the information (including any error, omission or misstatement, negligent or otherwise) or further communication, even if DBS Group has been advised of the possibility thereof.
The information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. The information is distributed (a) in Singapore, by DBS Bank Ltd.; (b) in China, by DBS Bank (China) Ltd; (c) in Hong Kong, by DBS Bank (Hong Kong) Limited; (d) in Taiwan, by DBS Bank (Taiwan) Ltd; (e) in Indonesia, by PT DBS Indonesia; and (f) in India, by DBS Bank Ltd, Mumbai Branch.