By Dan Romanoff, CPA
Publication Date: 2026-03-31 00:00:00
After bottoming in April 2025, the technology sector rebounded throughout 2025. Around the end of the year, tech stocks hit a wall and began to roll over, as strength in semiconductors and hardware could no longer carry weakness from the software industry. As a result, tech was the third-weakest sector in the first quarter. Over the last 12 months, tech’s performance has skewed above average, making it the third-best-performing sector, topping the overall market by over 600 basis points. Our confidence in secular tailwinds, such as cloud computing, artificial intelligence, and the long-term expansion of semiconductor demand, remains unchanged. After months of poor performance, we see software as offering the most upside.
Generative AI remains the largest theme within the sector. Software firms are developing and incorporating next-generation AI capabilities into their solutions, while cloud providers are introducing new services and scaling capacity, and some semiconductor firms,…
