Technology Sector

AAA

DEFINITION of 'Technology Sector'

A category of stocks relating to the research, development and/or distribution of technologically based goods and services. This sector contains businesses revolving around the manufacturing of electronics, creation of software, computers or products and services relating to information technology.

For more information, check out "Who are Apple's (AAPL) main competitors in the tech industry?"

VIDEO

Loading the player...

BREAKING DOWN 'Technology Sector'

The technology sector offers a wide arrange of products and services for both customers and other businesses. Consumer goods like personal computers, stereos and televisions are continually improved and upgraded, offering the latest technology to all users. Businesses receive information and services from software and database systems, which allow the companies to make strategic business decisions.

RELATED TERMS
  1. Cloud Computing

    A model for delivering information technology services in which ...
  2. Certified Data Processor - CDP

    An information technology (IT) certification. The certificate ...
  3. Common Business Oriented Language ...

    A type of language used in computer programming. Common Business ...
  4. Consumer Cyclicals

    A category of stocks that rely heavily on the business cycle ...
  5. Financial Sector

    A category of stocks containing firms that provide financial ...
  6. Utilities Sector

    A category of stocks for utilities such as gas and power. The ...
Related Articles
  1. Term

    Why You Should Consider Investing In the Tech Industry

    The technology industry offers huge investment opportunities.
  2. Stock Analysis

    The 6 Worst Technology Stocks of 2015

    Learn about the technology sector and how it has performed in 2015. Understand the six worst performing technology stocks by average return in 2015.
  3. Stock Analysis

    Is the Apple Watch a Real Threat to Fitbit?

    Examine the potential for marketplace competition between Fitbit and the Apple Watch in the rapidly growing consumer wearables industry.
  4. Stock Analysis

    5 Tech Stocks That Should Be on Your Radar

    Get an overview of the current state of the technology sector, and learn about strong tech stocks that investors should consider adding to their portfolios.
  5. Fundamental Analysis

    Sector Rotation: The Essentials

    We look at how the market signals impending economic cycles and sector performance during each stage.
  6. Investing

    Venturing Into Early-Stage Growth Stocks

    Picking these potential winners is all about sizing up risk. We show you how.
  7. Mutual Funds & ETFs

    Technology Sector Funds

    Evaluate past performance before investing in these types of gadget funds, as technology investors have been on a wild ride for a few years.
  8. Investing

    Clean Or Green Technology Investing

    Innovations in energy and consumption grow as companies adopt them to reduce costs.
  9. Investing Basics

    A Primer On Investing In The Tech Industry

    The tech sector can provide fantastic returns for investors with a little know-how in the field.
  10. Investing

    Why Are Startups Going International?

    Expansion into international markets, if it occurs, is the final stage of a startup's evolution. Lately, though, the opposite has been happening; international expansion now occurs fairly early ...
RELATED FAQS
  1. What are some examples of Apple and Google's best-selling product lines?

    There are many good examples of product lines in the technology sector from some of the largest companies in the world, such ... Read Full Answer >>
  2. How does the notion of the American Dream influence the US economy?

    The notion of the American Dream influences the U.S. economy because it creates the driving force behind the free enterprise ... Read Full Answer >>
  3. What is the QQQ ETF?

    The PowerShares QQQ, previously known as the QQQQ, is a widely held and traded exchange-traded fund (ETF) that gives investors ... Read Full Answer >>
  4. How much of a drug company's spending is allocated to research and development on ...

    Pharmaceutical companies spend, on average, about 18% of revenues on research and development (R&D), making the pharmaceutical ... Read Full Answer >>
  5. Who are Zynga's (ZNGA) main competitors?

    Originating in San Francisco in 2007, Zynga (ZNGA) is a leading developer of social media games such as "Words with Friends," ... Read Full Answer >>
  6. Who are Thomson-Reuters (TRI) main competitors?

    Thomson Reuters (TRI) is the worldwide market leader in financial data with a broad service range that includes publishing ... Read Full Answer >>
  7. What economic factors influence corporate bond yields?

    The most telling signs that a tech stock is about to burst are no different from the signs of impending collapse of stocks ... Read Full Answer >>
  8. What other sectors are most similar to electronics?

    The electronics sector is interconnected with sectors that engage in the design, production, distribution and sales of electronics; ... Read Full Answer >>
  9. What are some of the most prominent companies in the electronics sector?

    The electronics industry is part of the technology sector. This sector covers companies that are responsible for researching, ... Read Full Answer >>
  10. What is the long-term outlook of the electronics sector?

    While the electronics sector can expect moderate growth in the short- to mid-term, led by steady demand from emerging markets, ... Read Full Answer >>
  11. What are the best mutual funds for investing in the electronics sector?

    Within the technology sector, the electronics industry continues to experience growth as the technology that supports producing ... Read Full Answer >>
  12. What is Apple's current mission statement and how does it differ from Steve Job's ...

    Apple's current mission statement is "Apple designs Macs, the best personal computers in the world, along with OS X, iLife, ... Read Full Answer >>
  13. What companies will be hurt the most by Apple's latest product plans?

    As of 2015, Apple's latest product plans pose a challenge to rivals across several industries. These competitors include ... Read Full Answer >>
  14. What are some common examples of unsystematic risk?

    In financial lingo, the term "unsystematic" simply refers to a quality that is not commonly shared among many investment ... Read Full Answer >>
  15. How did Tim Cook become head of Apple?

    Tim Cook became the chief executive officer of Apple in August of 2011 after the death of founder and CEO Steve Jobs. His ... Read Full Answer >>
  16. How does Tim Cook's vision for Apple differ from that of the late Steve Jobs?

    Before his death in 2011, billionaire tycoon Steve Jobs handed over control of Apple to Tim Cook, then the company's Chief ... Read Full Answer >>
  17. What techniques are most useful for hedging exposure to the metals and mining sector?

    The metals and mining sector is largely counter-cyclical, meaning it outperforms the market during bad economic times but ... Read Full Answer >>
  18. Who are Qualcomm's (QCOM) main competitors?

    Qualcomm Incorporated (QCOM) is a multinational American company that sells telecommunications products. It competes in the ... Read Full Answer >>
  19. Who are Apple's (AAPL) main competitors in the tech industry?

    The range of products and services offered by Apple Inc. (AAPL) is broad, and the company is a fierce competitor in several ... Read Full Answer >>
  20. Who are Microsoft's (MSFT) main competitors?

    Microsoft Corporation’s (MSFT) primary competitors include some of the most prominent technology companies in the industry. ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Bubble Theory

    A school of thought that believes that the prices of assets can temporarily rise far above their true values and that these ...
  2. Stock Market Crash

    A rapid and often unanticipated drop in stock prices. A stock market crash can be the result of major catastrophic events, ...
  3. Financial Crisis

    A situation in which the value of financial institutions or assets drops rapidly. A financial crisis is often associated ...
  4. Election Period

    The period of time during which an investor who owns an extendable or retractable bond must indicate to the issuer whether ...
  5. Shanghai Stock Exchange

    The largest stock exchange in mainland China, the Shanghai Stock Exchange is a nonprofit organization run by the China Securities ...
  6. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!