The technology sector has been under severe pressure since 2026 started, with perhaps the most dramatic example of the downturn coming from Microsoft (NASDAQ: MSFT), which recently ended its arguably worst first quarter (Q1) of the century.
As it turns out, Goldman Sachs (NYSE: GS) views precisely this downtrend as a core reason why big tech stocks are the best buy in April.
Why Goldman Sachs sees big tech as the best buy this April
Specifically, the banking giant’s strategist, Peter Oppenheimer, estimated on Tuesday, April 7, that, following the downturn, the price-to-earnings-to-growth (PEG) of the technology sector has significantly improved by dropping below 1, thus hinting at undervaluation.
Simultaneously, the industry’s actual business results have continued on a positive course, as highlighted by the earnings reports published by most blue-chip firms during Q1. Indeed, Nvidia (NASDAQ: NVDA), Microsoft, Advanced Micro Devices (NASDAQ: AMD), and many others have all unveiled substantial growth while beating analyst forecasts.
Similarly, the metrics examining past earnings growth against stock market valuation and similar trailing measurements all indicate that big tech is cheap relative to essentially every other sector.
Thus, in Oppenheimer’s view, April 2026 might be presenting one of the best buying opportunities for investors looking to gain exposure to big tech.
Could the big tech downturn persist through 2026?
Elsewhere, Goldman Sachs has historically been dismissing the threat of an artificial intelligence (AI) bubble, noting that valuations remain tame compared to similar historical incidents such as the Dot-com bust.
Under the circumstances, the estimate that, following the widespread Q1 decline, the technology sector is a ‘Strong Buy,’ remains consistent since the outlook regarding future revenue and profits remains unchanged from the time Nvidia crossed above $5 trillion in market capitalization, while the stock prices have significantly declined.
The apparent health of the industry, including the purely AI plays, appears to have recently been confirmed by Anthropic’s revision of its annualized revenue for the ongoing year from $9 billion to $30 billion.
Despite the setup and despite big tech’s valuations turning less heated, it is noteworthy that the analysis is not universally bullish.
Are data center delays threatening the big tech rally?
Since the start of 2026, the capital expenditure on AI infrastructure has been a topic of contention, and some recent developments appear to show that at least some of the fears were rooted in reality.
A key point in the growth narrative has been the extensive data center buildout, including the anticipated rise in compute, but also revenue firms such as Nvidia will gain from equipping the facilities.
By April 9, 2026, however, most of the planned data centers in the U.S. have either been delayed or cancelled, and even the infrastructure announced as operational tends to be only partially completed.
Prominent AI critics such as Ed Zitron have also been calling into question the credibility of financial results revealed or hinted at by industry leaders such as OpenAI and Anthropic due to a lack of independent oversight and the apparent mismatch with the figures revealed by companies with greater transparency.
Zitron has also been questioning Nvidia’s ability to sustain its revenue and revenue growth, given the importance of corporate semiconductor trades and the impact data center setbacks are likely to have on actual demand.
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