Tech stocks have lost substantial value lately as part of the broader tech sell-off on concerns over the Federal Reserve’s forthcoming interest rate hikes, intensifying global chip shortage, and rising input costs. Although strong corporate earnings in the tech sector helped the tech-heavy Nasdaq Composite rebound recently, the unexpected drop in Amazon.com’s (AMZN) performance weighed heavily on the market sentiment, making the index face its biggest monthly decline in April 2022 since the 2008 financial crisis.
However, the surging demand for advanced and secure networking equipment and solutions, along with significant corporate and government funding to improve broadband infrastructure and the growing deployment of 5G technology, should keep driving the industry’s growth. The global networking equipment market is expected to grow at a 4.4% CAGR to reach $136.93 billion by 2027. The global network infrastructure market is expected to grow at a 3.9% CAGR to $229.74 billion by 2026.
