Investment professionals are betting on German stocks instead of US tech when it comes to favorites

The evaluation of 50,000 portfolios shows that investment professionals differ significantly from world indices when it comes to their favorites. Instead of tech stocks, they are betting on five German companies, among others.

The favorites of investment professionals: German asset managers rely on alternatives to tech stocks from the USA. Photo: Getty Images (3), HB/Flux2 [M]

Dusseldorf. The stock selection of German investors surprises some: their top ten shows clear differences from the composition of world indices, which are almost completely dominated by technology companies from the USA.

This is the result of a study by the Institute for Asset Development (IVA) together with the data provider Qplix. The experts analyzed which stocks were in German investors' portfolios at the turn of the first half of the year. Over 50,000 securities accounts from 190 independent asset managers, which are held by V-Bank, were evaluated.

Accordingly, only three American tech companies are among the most popular stocks among investment professionals. Instead, they rely more on German stocks. How analysts assess the selection.

1.Microsoft

Microsoft is known and has grown large with its large range of software. The US group is now also one of the world's largest providers of infrastructure for artificial intelligence (AI). This development is crucial for the share price.

The business development in the AI ​​sector recently convinced analysts. In the 2026 fiscal year, which ended at the end of June, Microsoft surprised with strong growth.

Sales in the Azure cloud division rose by 43 percent to more than 100 billion euros for the first time. The paid version of the AI ​​assistant Copilot is now used by more than 30 million users. Bank of America analyst Tal Liani says: “Microsoft’s results have reaffirmed the company’s AI strategy.”

AI investments are also increasing rapidly - by 65 percent to $145 billion in the past financial year. However, operating profit before taxes still increased by 34 percent to almost $166 billion. Measured against equity, Microsoft only has 9.1 percent debt, making it one of the best-financed tech companies in the world.

Analyst rating according to data provider LSEG: 56 Buy / 4 Hold / 0 Sell

Average price target for the next twelve months: 482.81 euros

Price-earnings ratio based on the net profit expected in the next twelve months according to the financial news service Bloomberg: 24.6 (ten-year average: 27.0)

Dividend yield in the current year: 0.7 percent

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2. Alliance

Allianz has been delivering reliable profits for years. The insurer achieved a record operating result in the first half of the year. Analyst Thorsten Wenzel from DZ Bank praised: "All three segments of the group are growing profitably. Phases of weakness in individual units are of little importance given the broad diversification."

The share price has risen accordingly. Over a five-year period, the stocks increased by 120 percent. There is also a reliable dividend: the profit distribution has increased nine times in the past ten years.

However, analysts are now more cautious at the current price level: the valuation is now higher than that of its competitor Axa. Prices for industrial insurance are crumbling - and the recently successful asset management with the group's own asset managers Pimco and Allianz Global Investors is dependent on the capital market mood.

Analyst Rating: 10 Buy / 8 Hold / 2 Sell

Average price target: 450.00 euros

Price-earnings ratio: 13.8 (ten-year average: 10.3)

Dividend yield: 3.90 percent

3. Amazon

Similar to Microsoft, Amazon has also expanded its business model. The US group is not only the largest online retailer in the world, but with its cloud division AWS is also the world's largest cloud provider.

The cloud business is now responsible for 60 percent of operating profit. For the analysts at the British bank Barclays, Amazon is therefore “at the forefront of AI hyperscalers” – the large providers of cloud infrastructure.

Amazon is also investing heavily in AI. In contrast to Microsoft, the investments are financed significantly more by debt. Measured against equity, Amazon's debt ratio is 24 percent.

In addition, the investments place a significantly greater burden on the balance sheet. The free cash flow, i.e. the freely available liquid funds after deducting all running costs and necessary investments, was also negative in the first half of the year.

Nevertheless, analysts assess the share extremely positively. Because the cloud business is significantly more profitable than online trading. As the segment also grows faster, Amazon's overall margin also improves and valuation falls.

Analyst Rating: 62 Buy / 4 Hold / 0 Sell

Average price target: $281.46

Price-earnings ratio: 19.5 (ten-year average: 44.6)

Dividend yield: no dividend

4. Alphabet

As with Microsoft and Amazon, AI is taking up an increasingly larger part of Alphabet's business. The Google parent is now even developing its own chips. The cloud business grew by 73 percent in the first half of the year and now accounts for almost 20 percent of total sales.

Alphabet is investing heavily to expand this area. In the future, search and advertising revenues could decline because consumers' search behavior changes due to AI language models and AI agents.

Due to the high investments, free cash flow was negative in the first half of the year. However, Thomas Kurian, head of Google Cloud, assumes that the AI ​​servers will pay for themselves within two years, and the chips even in one year. In this case, the AI ​​infrastructure could largely finance itself and the free cash flow would quickly turn positive.

What investors should note: Alphabet's price-to-earnings ratio is currently skewed downward. The group has a stake in the space company SpaceX and the AI ​​developer Anthropic. Both holdings have risen sharply in value, driving Alphabet's net income and lowering its valuation. This is similar at Amazon through its investment in Anthropic.

Analyst Rating: 54 Buy / 6 Hold / 0 Sell

Average price target: 379.66 euros

Price-earnings ratio: 20.6 (ten-year average: 20.8)

Dividend yield: 0.30 percent

5. Munich Re

As a reinsurer, Munich Re insures the risks of other insurance companies and receives premiums with which it generates income from investments. The company is known for its reliable dividend, which has remained at least constant over the past 20 years.

The price also rose dynamically between 2022 and 2025, but has been under pressure since then. Because prices in the reinsurance business are falling. Munich Re has recently been unable to enforce higher prices, while major losses, natural disasters, climate risks and volatility on the capital markets remain relevant risks.

Accordingly, analysts have recently become more cautious. Jochen Schmitt from Bankhaus Metzler is one of the optimists. He expects profits to increase again by 2028 at the latest and points to opportunities through AI: “We believe that AI offers an opportunity to increase efficiency.”

Analyst Rating: 9 Buy / 9 Hold / 4 Sell

Average price target: 555.00 euros

Price-earnings ratio: 9.9 (ten-year average: 11.0)

Dividend yield: 4.80 percent

6.SAP

The shares of the German software company SAP have undergone a significant correction. The trigger was the debate as to whether AI could make classic software superfluous. As a result, the stock fell by more than 50 percent.

However, the majority of analysts believe the debate is misguided. The analysts at the major Swiss bank UBS led by Michael Briest point out that the high complexity of the system landscapes that SAP customers have built up over the years is a competitive advantage. In their opinion, this creates an economic “moat” because switching providers would involve high costs and risks.

With convincing quarterly figures, SAP also managed to turn around the mood on the stock market. Almost 60 percent of revenue comes from the cloud business and is therefore potentially recurring revenue. The group is also debt-free and financially very solid. However, the rating has returned to its average value.

Analyst Rating: 26 Buy / 7 Hold / 1 Sell

Average price target: 203.00 euros

Price-earnings ratio: 23.4 (ten-year average: 23.7)

Dividend yield: 1.40 percent

7.Siemens

Siemens has transformed itself into a technology group that offers solutions for industrial automation, industrial software, intelligent buildings, energy infrastructure and mobility. As a result, the company benefits from megatrends such as electrification, the expansion of power grids, data centers, automation and industrial software.

However, the stock has already risen significantly. In the meantime, Siemens even replaced SAP as the most valuable DAX company. This can be seen in the rating, which is now well above its average value.

Analysts continue to rate the share positively on average. Stephan Bauer from Bankhaus Metzler explains: “Although the positive trends in order intake, sales and margins are already partially reflected in the share price and further positive earnings surprises are becoming increasingly unlikely, we believe that the share continues to offer upside potential.” To achieve this, Siemens must consistently implement the expected improvements, particularly in the areas of “Digital Industries” and “Smart Infrastructure”.

Analyst Rating: 21 Buy / 5 Hold / 2 Sell

Average price target: 312.50 euros

Price-earnings ratio: 20.4 (ten-year average: 15.4)

Dividend yield: 2.00 percent

8. Deutsche Telekom

Deutsche Telekom shares have recently moved significantly away from their annual high. The price discount is currently a good 15 percent. There are two reasons for this: concerns about satellite competition from the space company SpaceX and skepticism about a possible merger with the US subsidiary T-Mobile US.

The share recently received a boost from the entry of activist US investor Elliott Management. He opposed a merger with T-Mobile US. Analyst Akhil Dattani from the major US bank JP Morgan explains that a merger is “a highly complex transaction that most investors are against”.

In principle, Dattani, like almost all other analysts, rates the share positively. It is “extremely cheap”, despite attractive, double-digit percentage profit growth. Share buybacks and the dividend also speak for the share. At 132 billion euros, Telekom has more debt than any other DAX company. However, this is counteracted by high, increasing profits.

Analyst Rating: 19 Buy / 1 Hold / 0 Sell

Average price target: 36.50 euros

Price-earnings ratio: 11.5 (ten-year average: 13.5)

Dividend yield: 3.50 percent

9. Berkshire Hathaway

The Berkshire Hathaway holding consists of an insurance, an energy and an industrial division as well as dozens of small and medium-sized companies. There is also a stock portfolio worth around $300 billion, the largest position of which is the iPhone manufacturer Apple, with a weight of 22 percent.

The US group is considered almost legendary among investors: It was led by star investor Warren Buffett for 60 years, and the share price is the most expensive in the world at $770,000. For private investors, only the B share is de facto affordable, whose voting rights are significantly lower.

However, since Buffett announced his departure in May 2025, the stock has lost almost five percent of its value. The market-wide US index S&P 500 rose by more than 30 percent in the same period.

In times of crisis, however, the share could be in demand again. The conglomerate is considered one of the most stable companies in the world, with liquidity reserves alone amounting to $365 billion.

Analyst Rating: 1 Buy / 1 Hold / 1 Sell

Average price target: 458.13 euros

Price-earnings ratio: 24.8 (ten-year average: 22.1)

Dividend yield: no dividend

10. Novo Nordisk

Analysts have reduced their price targets by an average of 70 percent within two years. The purchase recommendation rate is only 25 percent. The skepticism is also reflected in the low valuation, which now looks just as attractive as the dividend yield.

Analyst Rating: 8 Buy / 21 Hold / 3 Sell

Average price target: 41.78 euros

Price-earnings ratio: 12.8 (ten-year average: 22.8)

Dividend yield: 4.20 percent

Related topics

MicrosoftAmazonSAPSiemensTech stocksBerkshire Hathaway

More: The dividend forecasts are rising the most for these three DAX companies

First published: September 15, 2026, 2:47 p.m.

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