Wednesday, October 10, 2007

Sector Watch - Technology

Core technology blue chips have been on fire in 2007. Cisco broke out of its rut and crossed the $30 mark, Intel started the year trading near $20 and now exceeds $25. IBM has jumped from $80 to just shy of $120 in less than a year. Money is flowing into semiconductors, chips, hardware, software and services. So is this rally going to continue. Gartner seems to think so ...

Worldwide information technology spending will surpass $3 trillion this year, according to market researcher Gartner Inc. Gartner said Monday IT spending in 2007 will reach $3.1 trillion, an 8 percent increase from last year. Spending for 2008 is forecast to grow 5.5 percent to reach $3.3 trillion.

"On a worldwide basis, IT spending continues to grow at a rapid pace in developing countries," said Peter Sondergaard, senior vice president and global head of research at Gartner, in a statement.

"In fact, one-third of IT spending now occurs outside of North America, Western Europe, and Japan. This development will create new innovation in IT, new competitors, new usage patterns, and continued cost improvement benefits for users," he added.
Gartner: Global IT Spending to Grow

1 comment:

Pat said...

Tech is the way to go. Could not agree more with you on how technology is shaping the new economy.

Excellent post!!!