What is Technology Sector?
The technology sector includes companies across hardware (Apple, semiconductor manufacturers), software (Microsoft, Adobe, enterprise SaaS), internet platforms (Alphabet, Meta), e-commerce (Amazon), semiconductors (NVIDIA, TSMC, AMD), and infrastructure (cloud providers AWS, Azure, GCP). Combined, tech is roughly 30% of the S&P 500 index by market cap. India's tech is dominated by IT services (TCS, Infosys, Wipro) — different business model than US software/platforms.
Why it matters for investors
Tech earnings move the entire market. The "Magnificent 7" (Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA, Tesla) drove the majority of S&P 500 returns in 2023-2024. Tech is also where the AI investment cycle is concentrated — driving capex (data centers, chips), revenue (AI-as-a-service), and productivity gains.