The technology industry emerged as the best-performing sector in the first quarter, encouraged by impressive earnings and cost-cutting measures from industry participants. Moreover, the Artificial Intelligence (AI) theme also played a prominent role in pushing stocks higher. Given the solid rebound, it could be profitable to scoop up the shares of Extreme Networks, Inc. (EXTR) and PCTEL, Inc. (PCTI) with strong fundamentals.
Although the tech sector has significant growth potential, some weak tech stocks might face difficulties due to macroeconomic headwinds. As investors weigh the risks of recession, investors could consider avoiding fundamentally weak tech stocks Akoustis Technologies, Inc. (AKTS) and Ondas Holdings Inc. (ONDS), which seem to be struggling.
