Meanwhile, the industry continues to grow through innovation as more shift to cloud, progress into artificial intelligence and adopt internet of all things devices.

“One reason for the inflows could be hedge funds returning to the tech sector. Regulatory filings show they were net sellers of a combined 7.5 million shares of Apple, and Alphabet Inc. in the first quarter. Those sitting on the sidelines have missed out on dramatic upside in 2017, with the five biggest American companies by value, which also include Facebook Inc. and Microsoft Corp., jumping an average of 26 percent this year,” according to Bloomberg. Inc. (NASDAQ: AMZN) is not classified as a technology, but it is a member of the consumer discretionary sector.

Investors looking for tactical plays on chip stocks, a group that has been a key driver of tech sector upside this year, can consider the VanEck Vectors Semiconductor ETF (NYSEArca: SMH) and the iShares PHLX Semiconductor ETF (NasdaqGM: SOXX).

For more information on the tech sector, visit our technology category.

Tom Lydon’s clients own shares of Apple and QQQ.