Increasing data-center expansion, the 5G rollout, and the continuing digital transformation are fueling the tech industry’s growth. However, the pandemic-driven tech boom now appears to be slowing down, and the industry is facing issues that include a semiconductor chip shortage and supply chain disruptions. Given this backdrop, Wall Street analysts expect Cloudflare (NYSE:NET), Asana (ASAN), and ASE Technology (ASX) to plunge in price in the near term. So, let’s discuss these names.COVID-19’s continuing spread should continue to drive the demand for tech products and solutions. Also, increasing spending on strengthening analytical capabilities makes the technology industry’s prospects bright. According to a Forrester report, the U.S. tech spending is expected to grow by 6% in 2021 and 6.8% in 2022. Furthermore, the expansion of data centers, the rollout of 5G, business automation, and remote lifestyles are also driving the technology market’s growth.
However, the pandemic-driven tech boom is gradually slowing down, and many companies in the sector face production delays due to semiconductor chip shortages and supply chain disruptions. Moreover, some industry participants are struggling to stay afloat due to increasingly intense competition to grab market share.
Therefore, Wall Street analysts expect the share prices of fundamentally weak large-cap stocks Cloudflare, Inc. (NET), Asana, Inc. (ASAN), and ASE Technology Holding Co., Ltd. (NYSE:ASX) to decline by more than 16% in the near term.