The technology sector is struggling with global supply chain disruptions, material scarcity, rising transportation costs, and labor shortages. Furthermore, looming interest rate hikes are expected to mar the industry’s growth. However, the growing dependency of businesses on tech solutions and associated emerging trends should help the industry more than offset the negatives. According to Forrester's U.S. Tech Market Outlook, the U.S. tech budget is expected to expand by 6.7% in 2022.
Furthermore, technology plays a vital role in decarbonization because many carbon-intensive companies are adopting high-cost technology to cut their carbon emissions. Investors' interest in tech stocks is evidenced by the Technology Select Sector SPDR Fund's (XLK) 22.6% gains over the past year.
