The tech sector is experiencing a golden age with no end in sight. With the world more connected and advanced than it has ever been, thanks to technology, it is no surprise that the stocks of companies in this industry from the FAANG (Facebook, Amazon, Apple, Netflix, and Google) group to the BAT (Baidu, Alibaba, Tencent) trio are skyrocketing in value.
While individual tech stocks have experienced some turbulence over the course of the year – for example, Alphabet’s share price has dipped back below the US$1,000 mark after rising above that threshold in June – the tech sector on the whole has seen nothing short of stellar growth.
An indicator of the remarkable growth and success of the tech sector is the Technology Select Sector SPDR ETF (XLK), made up of the largest US tech companies including Apple, Microsoft, and Facebook. It has gained around 20.5% so far this year.
But what lies in store for the future of the sector? What will be the next the game-changing innovations that revolutionise the way we live and turbo-charge stock markets?
As an investor, it might be daunting to try to understand where the growth areas are in the tech sector, and which companies to bet on. Here, we identify six tech trends that are dominating the news headlines, keeping the researchers and engineers busy, and piquing the interest of investors across the globe.