The COVID-19 pandemic has been a boon to the tech industry as it sped up digital transformation and accelerated tech dependence worldwide amid remote work lifestyles. The tech industry has thrived over this period, driven by sustained demand and increased adoption of advanced technologies such as artificial intelligence (AI), virtual reality (VR), cloud computing, 5G, and more. Furthermore, increased corporate and government spending is expected to benefit the tech industry.
Last month, concerns over the Federal Reserve’s aggressive interest rate hikes, weak corporate earnings of leading tech companies, strict lockdowns in China, and ongoing geopolitical crisis, triggered a brutal sell-off in tech stocks. Moreover, the tech sell-off pushed the tech-heavy Nasdaq Composite to the steepest drop since June 2020, slumping 11.4% over the past month. As a result of the recent tech rout, various high-quality tech stocks are trading at attractive prices.
