Over the past two years, the technology industry has thrived as organizations have moved to digitalize their operations to combat some pandemic-led damages. This has made the technology sector thrive. Technologies like Blockchain, Artificial Intelligence (AI), and Virtual Reality (VR) have gained immense prominence. The U.S tech industry accounts for 35% of the total world market and is expected to grow at a 5% CAGR through 2024.
The stock market has been highly volatile since the beginning of the year. While the S&P 500 has declined 5.6% year-to-date, the CBOE Volatility Index has increased 24% due to ongoing geopolitical tensions, looming interest rate hikes, and surging inflation. Against this backdrop, the tech sector has experienced a selloff. However, given the industry’s solid long-term growth prospects, companies possessing good earnings projections might still deliver solid returns.
