Past performance is never a guarantee of future earnings, but the tech giants listed above and many others from the sector will outperform the entire market, which is more macro-sensitive.
This is because the demand for the products and services of all these technology companies should continue to grow in the long term. For example, according to research firm MSR Group, the global cloud computing market could still grow at a compound annual growth rate (CAGR) of 27.9% between 2020 and 2025.
According to Fortune Business Insights, the online payment market could grow by an average of 23.7% between 2020 and 2027. The global semiconductor market, already facing a shortage of several chips today, could grow by an average of 10% from 2021 to 2026, according to market research firm EMR.
We may take these long-term forecasts with a grain of salt, but they all assume that leading technology companies will remain resilient during economic downturns as long-term demand for their products and services rises.