Tech To Remain Volatile, Creating Investor Opportunities

(MENAFN- Investor Ideas) (Investorideas Newswire) a go-to platform for big investing ideas, including AI and tech stocks issues market commentary from deVere Group.

More volatility is expected in tech stocks over the next few months as the market contends with fresh evidence that artificial intelligence is beginning a wider reckoning and as fears grow about its disruptive effects on existing business models.

This is the warning from the CEO of one of the world's largest independent financial advisory organisations as software and services equities tumble sharply on concerns that faster, more capable AI tools could erode pricing power in legacy software models, wiping out nearly $1 trillion in market value in recent sessions.

Nigel Green, chief executive of deVere Group, says today's market moves mark a fundamental re-evaluation of value in the digital economy.

This transition from optimism to differentiation has created pronounced bifurcation across technology sectors.

While AI infrastructure and data-centre builders have held relatively firmer ground, companies built on recurring software licences and process automation have been most exposed in the selloff.

Market indicators underscore these tensions. Software indexes in Europe, the US, and Asia have all posted steep declines as investors digest the implications of new generative AI tools that handle core enterprise workflows.

The Nasdaq's tech-heavy profile has felt particular strain, while commodities such as gold and precious metals have risen as traditional safe havens amid equity volatility.

Meanwhile, some tech names with deep AI concentration or earnings resilience have bucked the trend, reflecting a growing premium for proven monetisation and sustainable margins.

The deVere boss emphasises that this moment is not solely about fear of technology replacing humans.

He highlights two core mechanisms driving the sell-off.

First, AI diminishes switching costs by offering equivalent or superior service with far less friction, making entrenched long-term contracts less defensible.

Nigel Green underscores that volatility may persist until the market reaches a new equilibrium on how AI translates into durable profit streams.

He also notes that geopolitical and macroeconomic factors are amplifying these thematic shifts.

With macro risks such as tariff tensions and interest rate uncertainty still present, capital flows are increasingly selective, favouring quality and proven growth prospects over broad momentum.

Looking ahead, the CEO anticipates further stock price dispersion in the tech complex as earnings releases and valuations are recalibrated against real economic benefit from AI deployment.

In his view, this period of adjustment, while uncomfortable, represents a maturation of how markets price innovation in a world where intelligence automation is rapidly becoming a fundamental competitive factor.

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