Tech stocks have been under pressure amid rising inflation and the Federal Reserve’s interest rate increases. Investors’ pessimism has led to a price plunge by several fundamentally sound tech stocks this year. However, given the tech industry’s bright long-term prospects, fundamentally sound tech stocks could be bound soon for significant gains.
With organizations rapidly implementing digital transformations, the industry’s revenue is expected to grow at a 7.1% CAGR to reach $1.57 trillion by 2027. As per a report from Bain & Company, tech companies have contributed 52% of the total equity market value growth since 2015. Furthermore, trends such as creating supply chains for the future, the adoption of SaaS and everything-as-a-service and implementing hybrid workforces should bolster the market’s growth over the long run.
