The tech sector has suffered immense sell-offs since the start of the year driven in-part by the Federal Reserve’s hawkish stance to combat inflation and increasing geopolitical uncertainties. However, rising technology investments, strong corporate earnings, and the need for tech advancements across various industries have bolstered the sector's growth. According to Wedbush analyst Dan Ives, this might be an opportune time to aggressively own tech names because the sector looks oversold.
Also, David Groombridge, VP Analyst, Gartner, stated, "CEOs know they must accelerate the adoption of digital business and are seeking more direct digital routes to connect with their customers." Furthermore, emerging technologies, such as artificial intelligence, cloud computing, and AR & VR, are expected to fuel sector demand. According to Gartner, worldwide IT spending is expected to reach $4.4 trillion in 2022, increasing 4% from 2021.
