Although many technology stocks have tumbled in price since the beginning of the year on investors’ concerns over expected interest rate hikes, 2022 is expected to be a year of normalization for the technology sector, with an acceleration of digitization across the global economy. According to Forrester's U.S. Tech Market Outlook, U.S. tech spending is expected to expand by 6.7% in 2022.
Furthermore, an increasing dependency on cloud services and the growing popularity of wireless infrastructure should boost the industry’s growth. Investors’ interest in tech stocks is evident in the Technology Select Sector SPDR Fund’s (XLK) 23.6% gains over the past year.
