Technology Sector

The technology sector is a group of technology companies that are major drivers of global stock index performance today. Big Tech is a moniker used to describe mega-tech companies, including the so-called FAANG stocks (Facebook, Amazon, Apple, Netflix, Google). In terms of what the technology sector is, a number of agents operating in the financial sector classify companies following formal classification systems that allocate companies to specific industry sectors and sub-sectors along with companies in the same areas of business. This segmentation enables users to construct indices, for example, and makes it easier for investors and analysts to select companies for comparison. The Refinitiv Business Classification breaks the technology sector into four segments: technology equipment, software and IT services, financial technology and infrastructure, and telecommunications services. These four segments are further split into nine sub-segments and again into 18 smaller segments for a total segmentation of 52 tech company sub-groupings. The first two layers of the technology equipment sub-sector break down as follows: Semiconductors and semiconductor equipment Semiconductors Semiconductor equipment and testing Communications and networking Electronic equipment and parts Office equipment Computers, phones and household electronics Computer hardware Phones and handheld devices Household electronics Integrated hardware and software