This week, information technology stocks were once again in the spotlight as companies like Apple, Super Micro Computer, Advanced Micro Devices, and Qualcomm reported their results. Despite being down nearly 6% quarter-to-date compared to the overall market downturn, the information technology sector has seen a strong earnings season so far with 19 out of the 21 companies that reported beating expectations on both earnings per share and revenue.
Apple’s shares rose after reporting better-than-expected second-quarter results, despite concerns about iPhone sales in China. The company also announced a $110 billion share buyback, which is the largest in the U.S. to date. On the other hand, Super Micro Computer’s stock tumbled after a mixed third-quarter earnings report that fell short of market expectations, despite a significant increase in revenue from a year ago.
So far this quarter, 42 out of 383 companies reporting results are part of the information technology sector. Various sub-industries within the sector such as professional services, software, semiconductors, and technology hardware have also reported earnings. A majority of companies in the sector have beaten expectations for both earnings per share and revenue.
Looking ahead to next week, notable information technology companies like Palantir Technologies and Arm Holdings are scheduled to report their results while Unity Software will be reporting its Q4 results later this month. Investors can gain exposure to the performance of the information technology sector as a whole through investing in ETFs such as Technology Select Sector SPDR ETF (XLQ).
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