The tech sector started 2025 and 2026 significantly underperforming the rest of the market, setting up what Goldman Sachs Research calls a “technology value opportunity.”

Technology stocks have fluctuated since the start of 2025, weighed down by concerns about the impact of artificial intelligence (AI) and investors questioning returns on high spending by the biggest technology companies. In addition, the market is re-rating many “old-economy” capital-heavy companies in tandem with the rising importance of physical infrastructure.

At the beginning of this year, these worries culminated in a sell-off of technology stocks as fears spread about AI disrupting the business models of established software companies.

The upshot,…