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INVESTING | Information Technology Sector

A Sector is a broad selection of companies with similar characteristics. An Industry is a subset of Sectors where companies are grouped in more specifically than Sectors.


Investors can use Sectors and Industries to efficiently classify and compare companies. Comparing companies with shared Sector and Industry allows an investor to identify relative strengths and weaknesses. Comparing companies across different Sectors and Industries can help identify relationships and trends.


The Information Technology Sector includes hardware, software, computer equipment, IT services, like Microsoft, Alphabet (Google), Adobe and other technology-related companies. The total value of the Information Technology Sector in the United States is approximately $7.1 trillion.


The Information Technology Sector contains the following six industries:

  1. Communications Equipment Industry

  2. Electronic Equipment, Instruments & Components Industry

  3. IT Services Industry

  4. Semiconductors & Semiconductor Equipment Industry

  5. Software Industry

  6. Technology Hardware, Storage & Peripherals Industry

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