FRANKFURT (DEUTSCHE-BOERSE AG) - Tech companies are once again dominating foreign equity trading on the Deutsche Börse. However, scrutiny is intensifying over whether the multi-billion dollar AI investments are actually yielding returns.
May 7, 2026. FRANKFURT (Deutsche Börse). The Nasdaq 100 continues to scale new heights, and talk of an AI bubble has vanished. This trend is reflected in the trading volumes of foreign equities on the Deutsche Börse. South Korean semiconductor manufacturer SK Hynix topped the list for April, followed by US heavyweights such as Microsoft, Nvidia, Amazon, Alphabet, Intel, Micron, and Apple. The oil and gas majors that were so prominent in March - Shell, BP, Equinor, and Petrobras - have slipped down the rankings. Previously high-volume mining stocks, such as Pan American Silver, no longer play a significant role.
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, tech expert and investor.
More at: high-tech-investing.de
With the exception of Alphabet (US02079K3059), market reactions have been negative, despite results appearing to beat expectations at first glance. 'Investors are now being deterred by the increasingly expensive, resource-heavy AI investments, which are set to reach 800 billion US dollars for 2026 and an estimated 1 trillion US dollars for 2027.'
'A new kind of heavy industry'
According to Waldhauser, investors should get used to lower valuations for leading cloud providers - the hyperscalers - despite high growth rates. For years, valuation premiums were justified by capital-light business models. In the future, drastically increasing depreciation will weigh on previously healthy margins. 'Hyperscalers are becoming a new kind of heavy industry, which historically commands lower valuation multiples.' Investors should therefore not be lured into buying prematurely just because P/E ratios for companies like Microsoft or Meta are now significantly below their historical averages, making the stocks appear cheap on the surface.
Buy recommendations remain plentiful
Nevertheless, many banks continue to advise entry. For Amazon, Microsoft, and Meta, firms such as UBS, Goldman Sachs, Jefferies & Company, RBC Capital, and Barclays Capital expect further price gains and recommend a 'Buy'. Alphabet and Apple have also received 'Neutral' ratings from the likes of UBS and Jefferies.
'Opportunities beyond the central players'
'AI is no longer a trend that "lifts all boats equally,"' explains Ann-Katrin Petersen of BlackRock. Markets are differentiating more sharply based on how AI transforms business models. They are specifically looking for evidence that 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, particularly benefiting the semiconductor and hardware industries in Taiwan and South Korea. BlackRock favors US and emerging market equities. 'Active investors can also find opportunities beyond the central players of the AI expansion - for instance, among early AI adopters in the financial sector or in selected areas of healthcare such as imaging, diagnostics, and documentation.'
Freeing up capital for the SpaceX IPO
Waldhauser points to another factor: the uncertainty surrounding the expected summer IPO of Elon Musk's aerospace company, SpaceX. 'It is to be expected that institutional investors will sell highly liquid Mag7 stocks, particularly Tesla, in the run-up to the offering to free up capital for SpaceX,' he suggests. Few fund managers can afford not to have what will likely be one of the ten most valuable companies in their portfolio post-IPO. 'The success of SpaceX is almost pre-programmed due to tailored new listing rules.'
More at: hightechinvesting.com
By Anna-Maria Borse, May 7, 2026 © Deutsche Börse AG
(Deutsche Börse AG is solely responsible for the content of this column. The articles do not constitute an invitation to buy or sell securities or other assets.)
