Technology sector
The technology sector covers companies that make software, computer hardware, semiconductors, and the equipment and services that support them. It includes everything from chip designers and manufacturers to business software providers and consumer electronics makers.
Many technology businesses share one powerful trait: once a product exists, selling another copy costs very little. A piece of software can be sold to a million customers with almost no extra cost per sale, which allows high margins and fast growth once a product finds its market. That scalability is a big part of why technology companies often trade at higher valuations than businesses in other .
The isn't uniform, though. Semiconductor manufacturing, for example, is extremely and tends to move in sharp cycles of shortage and oversupply, quite unlike a software company with recurring subscriptions. Technology also moves quickly, so a dominant product can lose its position faster than in most other . Judging a technology company means looking at how durable its advantage is, not only how fast it's growing today.