The U.S. tech stocks have been experiencing steep price declines since the beginning of the year. Amid 40-year high inflation rates, growing concerns regarding forthcoming interest rate increases, and an intensifying semiconductor shortage, investors have been liquidating overvalued tech growth stocks. Furthermore, the escalating conflict between Russia and Ukraine has rattled the fragile stock market.
The bearish sentiment surrounding the tech industry is evident in the tech-heavy NASDAQ Composite Index's 18% decline year-to-date. Approximately 70% of the tech stocks listed on U.S. exchanges have declined in price so far. However, computer hardware companies are expected to maintain their growth trajectory through the coming months due to strong demand amid a continuing remote culture.
