- Overall, we view the tech sector as modestly overvalued at a market cap weighted price/fair value of 1.02.
- Enterprise cloud computing remains the most important story in tech.
- Data security and privacy remain at the forefront of technology.
- We still see a hot M&A sector, particularly in semis and software.
Overall, we view the Tech sector as slightly overvalued today at a market cap weighted price/fair value of 1.02 as of May 31, versus 1.05 as of the end of February and 1.08 at the end of November. The Nasdaq index has risen about 4% from mid-March to mid-June and is up about 11% year to date in 2018 as of mid-June.
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Brian Colello does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.