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Spending on artificial intelligence (AI) has increased significantly due the increasing demand for automation over the past years. Furthermore, AI technology is expected to remain a top priority for federal agencies for data collection and storage solutions. The growth of the software industry is evidenced by the SPDR S&P Software & Services ETF’s (XSW) 37.9% gains over the past year versus the SPDR S&P 500 ETF Trust’s (SPY) 27.4% returns.
Since current market volatility caused by factors including an expected increase in interest rates and rising Treasury yields could lead to high-priced popular tech stocks suffering a price decline in the near term, we think lesser-known tech stocks with sound financials—Viavi Solutions Inc. (VIAV) and Commvault Systems, Inc. (CVLT)—could be ideal bets to cash in on the industry tailwinds.
