Investors’ concerns over looming interest rate hikes have caused tech stocks to suffer a sell-off lately. However, investors are still optimistic about the overall tech sector, given ongoing digitization. In addition, a continued deepening of the remote life and work culture is expected to drive the growth of the tech sector. According to IDC, the technology industry is on pace to exceed $5.3 trillion this year.
Furthermore, small-cap tech stocks are expected to benefit as big tech deals with significant regulatory challenges in 2022, with multiple antitrust lawsuits. According to Francis Gannon, “Small caps today are about 8% below their most recent high and yet, fundamentals for many of the businesses continue to improve.”
