Tech stocks have made big V-shaped rebounds five times in 30 months — and now Deutsche Bank forecasts another bounce

Deutsche Bank has turned overweight on technology stocks, arguing that investor positioning now implies much slower earnings growth than the sector is actually delivering. The call comes after five sharp V-shaped rebounds in tech over the past 30 months, a pattern that has repeatedly rewarded investors who bought during periods of pessimism. According to the bank, the current risk-reward profile favors a sector that has suddenly fallen out of fashion.

The core of the argument is a gap between perception and fundamentals. When positioning is light, expectations are low, and any earnings resilience can surprise to the upside. Deutsche Bank's view is that the market has priced tech for a slowdown that has not materialized, leaving room for a re-rating if results hold up.

For observers, the key question is whether this is a genuine inflection or another short-lived bounce. Watch upcoming earnings reports, guidance on capital spending tied to artificial intelligence, and shifts in fund flows and positioning data. If earnings continue to outpace the subdued expectations embedded in portfolios, the case for a rebound strengthens. If growth decelerates, the "out of fashion" discount may prove justified. Either way, the divergence between sentiment and fundamentals is the metric worth tracking.