As of April 10, 2026, the iShares Expanded Tech-Software Sector ETF (NYSEMKT: IGV) has dropped 30% this year, significantly underperforming the S&P 500, which has remained flat. However, on April 10, the ETF rebounded by over 4% as investor sentiment shifted, potentially influenced by Goldman Sachs’ identification of a “value opportunity” in tech stocks. This indicates a notable change amid ongoing fears related to AI advancements and high valuations.
Goldman Sachs highlighted that technology sector valuations have dipped below those of the broader market, noting that the premium for software stocks is at its lowest in about ten years. The P/E ratio of the tech sector is now less than that of consumer staples and industrials, despite expected growth rates being much higher. Investor anxiety surrounding software stocks continues to persist, though many companies in this sector report strong earnings.
Market volatility is expected to continue in the software sector, but it is suggested that current price levels may represent an oversold condition, particularly as many companies begin to utilize AI advancements as growth drivers.
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