The past few weeks have been rough for much of the technology sector. Concerns about AI spending, lofty valuations, and new competition in the chip space have hit many tech stocks, especially semiconductor stocks, neocloud, and memory. The VanEck Semiconductor ETF (NASDAQ: SMH), for example, finished Friday, Oct. 23, more than 21% below its 52-week high and near major higher-timeframe support and its 200-day simple moving average (SMA).
The good news for bulls, though, is that it hasn’t been a one-way street across the entire tech sector. Look a little closer, and several pockets of the sector have held up surprisingly well, with a few still trading within striking distance of their 52-week and even all-time highs. Interestingly, much of that strength has come from software and cybersecurity stocks, two areas many investors had written off earlier this year as likely losers in the AI race. That narrative has flipped on its head.
