Published on 7 Aug 2023 on Insider Monkey via Yahoo Finance

15 Worst Performing Tech Stocks in 2023

In this piece, we will take a look at the fifteen worst performing technology stocks in 2023. If you want to skip a background on the tech sector and particularly the stock market, then take a look at 5 Worst Performing Tech Stocks in 2023.

When it comes to mega cap stocks, the technology sector has been the best performing segment on the stock market during the first half of 2023. This sharp rebound came after the sector tumbled during the turbulent economic environment last year that saw significantly higher fuel prices lead to soaring inflation. During this turmoil, the consumer technology sector was hit particularly hard, with chip firms for instance finding it difficult to ship sufficient products into the market. The worsening consumer environment was dealt an added blow when the Federal Reserve acted fast to combat inflation by rapidly increasing interest rates. Such a decision has several broad implications, one of which was a disruption in the bond market which made fresh debt more lucrative than previously issued securities.

However, while dismay in the bond caused mayhem in the banking industry in March, the technology sector soared to reverse all of its 2022 losses and add a little bit of gains on top. For instance, the S&P 500 Information Technology stock index had stood at 3,107 points in December 2021, and after dropping to roughly two thousand points at the bottom in October 2022, went on to touch 3,167 in mid July 2023. Technology stocks, defying all expectations, had performed well even when interest rates had touched multi decade highs. This trend has started to taper off a bit during the current quarter, as the index is down by a marginal 1.74% as of early August. Yet, the S&P technology index and the NASDAQ 100's year to date returns are roughly the same, with the former trailing the latter by 100 basis points. Some notable firms that rode the tech wave in H1 2023 are Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), Meta Platforms, Inc. (NASDAQ:META), and Tesla, Inc. (NASDAQ:TSLA).