Is this the end of the road for tech?
- 12 June 2025 (3 min read)
After a good 2023 and 2024, tech sector has underperformed in 2025, and investors can’t be blamed for asking if the tech trade is at an end.
Short answer: No.
The tech trade is going nowhere but the rules are changing. Investors need to look at the tech sector again to understand where the returns of tomorrow could come from.
In this video, AXA IM technology portfolio manager James Dowey outlines where we believe tech investors should be looking for potential sources of outperformance.
Innovation – AI is just getting started and has the potential to be a strong driver of returns for decades to come
Valuation – Attractive valuations are good, for a lot more growth potential and underlying quality than just a few years ago
Foundation – Tech companies have high levels of free cashflow and strong balance sheets which could help them weather any potential macroeconomic disruption that could be on the horizon
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