(Bloomberg) -- Monday’s tech rout gives investors yet another reason to buy bank shares, according to Wells Fargo analyst Mike Mayo.

The KBW Bank Index was down 0.5% at 11:22 a.m. in New York as buzz about a new Chinese AI model sent shares of Nvidia, Microsoft and other tech giants tumbling. Mayo says tech weakness doesn’t ding his bullish thesis on banks, noting that banking stocks outperformed the broader market after a tech selloff in 2000.

Regardless of the tech sector, “we see a new era of banking given what’s likely the most positive regulatory inflection point in three decades,” the analyst wrote in a Monday note to clients.

Mayo sees echoes of the early 2000s in today’s market, noting the high forward price-to-earnings ratio of some of the Magnificent Seven tech stocks. Bank stocks beat the S&P 500 and Nasdaq over six, 12 and 18 months following the dot-com era peak, he wrote.

©2025 Bloomberg L.P.