The Technology All Share index (NMDP/ TECALL) is a benchmark, monitoring the performance of companies in Germany's technology sector. It encompasses a range of firms, including those involved in software, hardware, telecommunications, and digital services.
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This index is an important indicator for investors seeking exposure to Germany’s technology landscape, highlighting the growth potential of domestic tech companies. The index holds several well-known names, including SAP, Deutsche Telekom, and Infineon Technologies, offering some crossover with the TecDAX.
The index currently (as of February 2025) holds 109 stocks and has gained over 20% in the last three months.
Technology All Share (NMDP) Performance
The index has performed very well as of late. However, in September 2021 and September 2024, it was on the slide, influenced by evolving market dynamics and global economic factors. Despite US President Trump talking of tariffs on the EU, the index has performed well so far in 2025.
| Period | Performance (as of February 2025) |
|---|---|
| 1-Year Performance | +7.90% |
| 2-Year Performance | +7.14% |
| 3-Year Performance | +2.60% |
Technology All Share (Performance) Index Top 10 Companies
| Company | Market Cap (As of February 2025) |
|---|---|
| SAP | $330.95 Billion |
| Deutsche Telekom | $179.80 Billion |
| Infineon Technologies | $52.35 Billion |
| Siemens Healthineers | $67.97 Billion |
| Qiagen | $8.55 Billion |
| Sartorious | $15.82 Billion |
| HENSOLDT | $5.71 Billion |
| Nemetschek | $14.25 Billion |
| Nordex | $2.89 Billion |
| Carl Zeiss Meditec | $5.12 Billion |
German Technology Stocks Forecast
The Bull Argument: While the economic situation in Germany and Europe in general (as of February 2025) is not the best, investors with a bullish outlook on German technology stocks have pointed to the ongoing digital transformation in Germany as a strong driver of growth. With investments in AI, cloud computing, and industrial automation on the rise, the sector is expected to deliver solid long-term performance. According to Technavio, the German Information Technology market is expected to increase by “$33.3 billion at a CAGR of 4.2% between 2024 and 2029. The market is experiencing significant growth, driven by several key trends.”
The firm notes that in Germany, Small and Medium-sized Enterprises (SMEs) are increasingly adopting IT solutions to boost productivity and competitiveness, while the “adoption of Big Data solutions by enterprises is on the rise, enabling better decision-making and business intelligence.”
Overall, the supportive regulatory environment and strong export orientation of many German tech companies provide a favourable outlook. Innovations in fields such as renewable energy technology and smart manufacturing could also boost the sector's growth prospects.
The Bear Argument: However, as with any potential investments, there are also risks to watch out for. Bearish investors may point to the inherent volatility of technology stocks. In addition, concerns over global supply chain disruptions, tariffs and increasing competition from international tech giants could pose risks to the performance of German technology companies. Additionally, potential regulatory changes within the European Union and shifts in consumer demand may create headwinds.
Technavio also points out that the market faces challenges, such as the shortage of skilled IT professionals, and that this may hinder market growth. “Companies must invest in training and development programs to address this issue and meet the growing demand for IT expertise,” they write.
Our View: While the German tech sector is subject to volatility and, like its European counterparts, has been overshadowed by significant US tech names, its long-term prospects remain promising due to the country’s reputation for engineering excellence and innovation. There are some well-known stocks to assess and investors who are enthusiastic about digital transformation and technological progress in Germany will find that having exposure to the sector could be a potentially positive addition to their portfolios. However, those with lower risk tolerance should be prepared for the market’s inherent fluctuations.
Who Should Invest in German Technology Stocks?
Those interested in German tech stocks may want to look at ETFs such as the DAX Germany ETF, which tracks the DAX index and includes many tech stocks that are featured in the Technology All Share index. The iShares MSCI Germany ETF is another ETF to consider given its tech weighting.
Generally, the sector is ideally suited to:
- Growth-focused Investors: Those seeking capital appreciation from cutting-edge technology companies in Germany.
- Tech Enthusiasts: As you may expect, investors with a keen interest in digital innovation may see potential opportunities in German technology names.
- Risk-Tolerant Individuals: Given the volatility associated with tech stocks, this sector is best for those comfortable with short-term market swings in exchange for long-term gains.
Long-Term Investors: Investors with a long-term horizon can benefit from sustained innovation and gradual sector growth over time.
