The technology sector The stock market has experienced a significant decline in recent months, mainly due to the increase in inflationthe rotation within the market from growth to underestimation, the Weakness in consumer demand and changes in chains the offer. Although market noise has clouded the picture, The long-term drivers of the technology sector remain Salim.
Some of the main issues discussed during the trip were the increased demand for Digitization and automationPowerful vectors of growth, the solid path of Semiconductorsnew look Technologies To improve the move to the cloud and the growing focus of companies on maintaining Profitability through pricing power.
“The Covid virus and disruptions in supply chains have really become a cTechnology Adoption CatalystsEspecially digitization, automation and hybrid work”, refers to the opportunities of tomorrow hyun ho shomanager of Global Fidelity Funds Technology. Companies must invest in technology to maintain a competitive advantage in challenging environments. Hybrid and process automation To reduce exposure risk,” he adds.
And where to find the key potential with lower valuations on Wall Street today within the tech space? For Ho Sho, The main areas of investment that will benefit are the cloudand security, data analytics, and hardware companies that provide technologies for hybrid business models. For example, Amazon has a bullish view in this area Thanks to its AWS Cloud Services business.” “They see the value proposition of the cloud getting stronger with hybrid work, which is a trend that is expected to continue after the virus,” he identifies.
Despite macroeconomic headwinds, spending on data centers and cloud remains flat
In this sense, despite the macroeconomic difficulties, toData Centers and Cloud Spending Still Resilient. “Our meeting with Marvell Technology, which develops and produces semiconductors, revealed a strategic reorientation of its portfolio to focus on data centers at the expense of consumer products,” the American expert shares the director. “that it Limits your exposure to periodic consumption And the large number of new big chip customers should accelerate revenue.”
Within the semiconductor sector, companies consider that Electric cars are the main engine Long-term demand for chips. Approximately 10% of global car sales in 2021 were electric cars, that is, Market share quadrupled from what it was in 2019, which is a great way to grow like the rest of the global car parks. “In other sectors, conversations emphasized that AI-based recommendation engines must also be offered Tangible return on investment for Internet companies,” says Ho Sho.
new technologies
The world can find itself before Early stages of transition to the cloud due to network bandwidth limitations. Intel fully trusts CXL, New and interesting linkage system of memories that can significantly increase server memory bandwidth (a feature of memory chips and cloud services) and Arithmetic ability (Good for data center operators who have a demand for chips, and who will be able to offer new and more interesting offers to customers).
The technology also works through existing physical interfaces, which should facilitate and increase their adoption by consumers. For the next few years“, says Hu Xu. Due to market turmoil and an overreaction to the current short-term noise, bottom-up investors are facing a Good opportunity to generate returns, as defined by experts. “Valuations are at attractive levels and the leading technology companies in the sector are now trading at low multiples with no change in their long-term growth profiles,” they highlight from Atlantic Capital in a report.
Follow conversations in Silicon Valley with companies like Zoom (video conferencing platform) and Zendisk (a customer service software company), it has strengthened my conviction in the growth of software companies,” says Director devotion. In this way, according to Sho, there will be opportunities in the leading software products found in Early stages of penetration and market opportunities Open, which is trading at discounted multiples and has no history of demand inflation due to Covid. “I hope that Increased mergers and acquisitions in the software sector, Given that many small businesses with desirable assets are now much cheaper due to recent strong sales,” he concludes.
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