A sideways market and rising earnings are presenting opportunities not seen since ChatGPT first launched

A sideways market combined with rising earnings has created conditions in technology that Truist describes as presenting opportunities not seen since ChatGPT first launched. The firm frames the current backdrop as a reset for the sector, one that makes technology more attractive relative to the broader market.

The logic rests on two forces moving together. When prices trade largely flat but earnings continue to climb, valuations compress without any decline in underlying profits. For technology, a sector that spent much of the post-ChatGPT period carrying elevated multiples, that combination can shift the risk-reward calculation versus the rest of the market.

What to watch is whether earnings growth persists alongside subdued price action. If profits keep rising while share prices stall, the relative attractiveness Truist highlights would tend to strengthen; if either side of that equation changes, the setup weakens. Investors may also want to monitor how broadly any improvement is distributed across the sector, rather than assuming it applies uniformly to every technology name.