Here’s the thing about market rotations—they’re like musical chairs, except everyone’s playing with billions of dollars and the music keeps changing. Right now, while everyone else is chasing energy stocks on the Iran war hype train, David Bianco, the Americas CIO at DWS Asset Management (which manages over $1 trillion, no big deal), is doing something refreshingly contrarian: he’s going back to Big Tech.
And honestly? He might be onto something.
The setup is pretty straightforward. Oil prices are spiking thanks to Middle East tensions, energy stocks are having their moment in the sun, and everyone’s acting like crude is the only game in town. But Bianco sees through the noise. He thinks Big Tech—the sector that’s been getting absolutely hammered so far in 2026—is actually the smarter play right now.
Why? A few reasons. First, tech companies are basically immune to the Iran war fallout. While other sectors are sweating geopolitical risk, Big Tech is just… doing its thing. More importantly, the capex spending on AI data centers isn’t slowing down. These companies are committed to their AI bets, and they’re going to keep throwing money at infrastructure regardless of whether the economy is running hot or limping along.
Even if the economy is very slow, this investment spending on the data centers is going to continue, Bianco told Business Insider. Translation: the AI gravy train isn’t stopping for a little geopolitical drama.
Then there’s the valuation angle. After getting beaten down, Nvidia and Microsoft are now trading at a notable discount relative to the S&P 500. That’s the kind of setup that makes value investors salivate. You’re getting high-growth tech companies at prices that actually make sense. I think it’s time to get back to tech stocks and appreciate the secular strength of their earnings, Bianco said. Secular strength is just a fancy way of saying this trend isn’t going away.
Now, here’s where Bianco gets a little spicy about what he’s not buying. Energy stocks? He’s underweight. Sure, they might keep going up in the short term, but unless you think the Iran crisis is going to be a multi-year thing, chasing them feels like catching a falling knife. I have a tough time chasing energy stocks, he said, which is basically Wall Street speak for I’m not doing it.
He’s also pumping the brakes on transportation, consumer discretionary, housing, and automotive stocks. These are all rate-sensitive sectors, and Bianco’s economic outlook is pretty grim. He expects the 10-year yield to stay well above 4%, which means interest rate cuts aren’t coming to save the day. Housing and auto recovery? That’s getting pushed to the back burner.
The bottom line: while everyone’s distracted by oil prices and geopolitical chaos, Bianco’s betting that boring old Big Tech—the sector that’s been out of favor—is about to have its revenge arc. And given his track record managing a trillion dollars, that’s probably worth paying attention to.
