Since the beginning of the year, tech stocks have been “correcting” amid intensifying macro headwinds. The April rout in technology stocks has dragged down the major U.S. indices to their worst monthly performances, driven by the investors' escalating worries over surging inflation, rising interest rates, weak corporate earnings, and the possibility the U.S. economy is heading into a recession. Investors have been liquidating tech growth stocks on these heightened fears.
However, the brutal tech selloff affords long-term investors an opportunity to buy financially solid tech stocks at bargain prices. Furthermore, yesterday U.S. stocks managed a relief rally after the Fed raised rates by 50 basis points. And the computer hardware industry has bright growth prospects, driven by solid demand amid extended remote lifestyles and increased corporate spending on IT hardware. According to a report by The Business Research Company, the global computer hardware market is expected to reach $1.57 trillion in 2026, growing at a 6.6% CAGR.
