Technology: Stocks Give Back Some 2025 Strength During the First Quarter
The technology sector experienced a significant rebound in 2025 after bottoming in April but saw a downturn in the first quarter of 2026, becoming the third-weakest sector as software industry weakness outweighed semiconductor and hardware strength. Despite this, Morningstar maintains confidence in secular tailwinds like cloud computing, AI, and semiconductor demand, highlighting software as having the most upside. The report identifies Broadcom, Microsoft, and NXP Semiconductors as top picks, emphasizing their opportunities in AI and other growth areas.
https://www.morningstar.com/stocks/technology-stocks-give-back-some-2025-strength-during-first-quarter