What disruption? Deutsche Bank turns bullish on software stocks, saying AI fears have peaked.

Brendan McDermid/Reuters

• Deutsche Bank strategists say the market's AI fears have peaked.
• The firm upgraded software stocks to overweight and lifted its tech sector rating.
• Solid earnings from software firms don't support fears that AI will upend the industry.

Deutsche Bank said reality doesn't align with investors' fears that AI will eat software.

Strategists at the bank issued a bullish call on software stocks on Wednesday after weeks of worry that...