Why Wall Street analysts see the tech-sell-off as overblown, and fueled by 'fear, not fundamentals'

Trader sits at trading desk on the floor of the New York Stock Exchange.

Brendan McDermid/Reuters

• Tech stocks, led by software, are under pressure amid fresh fears of AI disruption.
• Bank of America analysts say the sell-off is overblown, comparing it to 2025's DeepSeek panic.
• Investor fears, not fundamentals, are what's driving the downturn, William Blair analysts say.

Bank of America analysts say Wall Street is blowing the latest AI fears out of proportion as the tech sell-off drags on.