In 2022, the technology sector has experienced one of the worst years in post-war history. And it applies to Asian, American, and European companies. In the BCM TOP 10 Technology Chart, January 2023 Update, there is only one significant change. The originally Czech antivirus developer Avast has left the chart as the company merged with the US NortonLifeLock. The newcomer is the Dutch semiconductor manufacturer ASML Holding.
While the years 2020 and 2021 were successful for the technology sector, with the arrival of 2022 there was a turning point. By summer, many companies had lost tens of percent of their market value. Among European technology companies, BioNTech (-47.6%), Spotify (-46.1%) or Siemens (-29.9%) suffered the most. *
However, in the second half of the year, the decline stopped (with some exceptions) and, especially in the last quarter, the arrival of good news led to a reversal of the trend. The market value of several technology companies has started to rise. This development was intensified at the turn of 2022 and 2023. In the first two weeks of the new year, we could then witness growing optimism on the stock markets, which spilled over mainly into the technology sector.
Data on the development of inflation played its role above all. In December, it decreased both in the USA and in Europe. This may mean a reduction in the pace at which central banks raise their key interest rates, which is good news for the financial markets.
Some tech companies even nearly erased their decline in market value last year, especially those focusing on machinery or hardware products. For example, the German company Siemens AG is only less than 2.5 percent below its market value from mid-January last year. ABB Group (-5.47%) or the Dutch semiconductor manufacturer ASML Holding (-7.85%) also lack low percentage points to match last year's level. *
On the other hand, there are technology companies whose market value fell even lower in the second half of last year. These are, for example, Spotify, which lost almost 58 percent of its value during the past year (in the first half of the year, its decrease was only 46.1 percent), Ericsson (year-on-year decrease of 37.2[A1] 4percent) or Medtronic (year-on-year decrease of almost 26 percent). *
The outlook for the technology sector for 2023 can still be considered quite uncertain. Although the uncertainty regarding the current economic development is somewhat lower than it was at the beginning of 2022. Especially considering the probability that inflation has already peaked, and the economic recession may not be as deep and long as it seemed just a few months ago. 
BCM analyst team
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* Past performance is no guarantee of future results.
 Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.
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