Tech stocks are witnessing a significant sell-off on concerns over expected interest rate hikes. However, surging demand for efficient networking solutions to facilitate remote working and digital operations and significant funding from the infrastructure bill to improve broadband access should drive the networking industry’s growth.
Continuing demand and advancements in networking solutions should help the industry thrive. Growing investor optimism in this space is evidenced by the iShares North American Tech-Multimedia Networking ETF’s (IGN) 3.2% gains over the past nine months versus the SPDR S&P 500 Trust ETF’s (SPY) 1.7% returns. The global network infrastructure market is expected to grow at a 3.9% CAGR to $229.74 billion by 2026.
