In the S&P 500 index, technology companies gained 48% of value this year, resulting in the best performance of the last 10 years. The index, which includes 70 technology companies, is expected to be further valued with the spread of 5G technology.
The shares of technology companies are about to close their best year since 2009. In the S&P 500 index, technology companies gained more than 48% this year. The growth rate of the main index was 29%. The technology sector was the best performing cluster of the main index, while the communications services sector rose 31%. S&P 500 technology index consisting of 70 companies; The 80% value Apple gained in 2019 and the share values of semiconductor manufacturers made a major contribution.
Semiconductor company Advanced Micro Devices was the top winner of the index with 153%. Chip manufacturing companies Lam Research, KLA and Qorvo; With an increase of more than 90%, it ranked top of the list. In 2019, only 7 of the 70 companies declined. The company’s 2019 performance is at its highest point after the 60% increase in 2009.
Supply chain companies continue to grow:
This year’s rise was driven by the recovery of difficult stock markets. The impact of the financial crisis on the stock market, last year, the stockists had made purchases at low prices. With the continued growth in the smartphone market and the introduction of new personal devices, technology companies have had an unexpected chance.
Apple was ranked 8th in the 2019 index, while the company’s market value was the key factor in the good performance of the technology industry. iPhone sales slowed down and the company shifted to wearable products and services. The new iPhone 11’s better-than-expected sales performance also helped strengthen the technology giant’s shares.
With the spread of 5G technology next year, the rise of the technology sector may be even greater. iPhone 520 will bring in 2020 with the new iPhone models will open the front of the said.
Bank of America also increased Apple’s price targets. With 5G upgrades, the iPhone’s annual sales figure is estimated to be over 200 million for at least three years. Experts, price estimates from $ 270 to $ 290 increased. Companies like Sony, Qualcomm and Taiwan Semiconductor will also benefit from the spread of 5G technology. Supply chain companies such as Micron, Qualcomm and TSMC will continue to perform well in 2020 said.