I am Bullish on Tech Sector in 2011 – Here is why

Let me tell you why I’m bullish on the tech sector.
Here are just a few key indicators:
• Profit margins at U.S. technology companies are at record highs.
• Chipmakers – who saw sales rise 28% in 2010 – are seeing stronger demand for consumer items and businesses are now making purchases that were delayed in the recession.
• Respected research firm, Gartner, reports that sales of server systems jumped 15% in the third quarter of 2010, a sign that large technology firms are spending again on big tech projects. (Sales of server systems generally precede spending on other technology products, such as storage systems and software.)
• There’s plenty of fuel for merger and acquisition activity – like Intel’s $1.5 billion purchase of ArcSight – as U.S. corporations are currently sitting on nearly $2 trillion in cash.
• The Fed’s Beige Book reports that manufacturers of high-tech products are operating near maximum capacity of late.
• Due in part to record demand in Asia and Latin America, the market for mobile devices such as handsets and media players are expected to top two billion in 2011 and reach 2.7 billion within four years.
• International Data Corporation (IDC) estimates that worldwide IT spending will top $1.5 trillion in 2011, with spending on PCs, servers, storage and networking gear expected to soar.
• Global capital spending on wireless infrastructure will rise dramatically as carriers in the developed world start deploying next-generation 4G networks.
• The Telecommunications Industry Association (ITA) states that broadband stimulus monies will add to  multiple-digit growth in core infrastructure allocation during the next couple of years.
It’s true that most businesses are reluctant to hire new workers right now. But they can improve productivity and cut costs by investing in technology.
Right now, corporate executives understand that the economy is weak, unemployment is high and consumer confidence is in the cellar. They can’t count on customers beating a path to their doors. So they remain focused on increasing profits by improving operating efficiencies and lowering costs.
If you own – or are a shareholder in – a business that allows companies to do that, you may very well experience the best of times this year.