The technology industry offers huge investment opportunities.It’s the market’s largest segment. Competition creates a steady stream of new and improved products while it renders others obsolete, which also means a tech company may fall as quickly as it rises to prominence. Technology has four mega sectors: semiconductors, software, hardware, and networking/Internet. The semiconductors industry is large on its own, but the number of physical products that rely on it is vast. Software is similarly large because computers require it to function. Hardware includes communications equipment, computers and peripherals, networking equipment, technical instruments and consumer electronics. Finally, the Internet has led to new business models and major changes in commerce. Tech stocks usually have higher premiums, which come from the high growth rates that successful companies enjoy. But remember, even unsuccessful companies can carry robust valuations. Many public tech companies have yet to produce profits or a cash flow, leaving investors little but guesswork when building discounted cash flow valuation models. But note that understanding a tech company’s products, and its rivals’ products, provides an advantage over those who don’t make the same effort. Avoiding the tech industry limits your options. You are probably better off embracing the opportunities offered by one of the most dynamic economic drivers of the modern world.