Stocks classified under the information technology sector have business operations that manufacture electronics, create software, computers, or computer parts, or conduct research and development relating to technologically based goods and services. Stocks in the information technology sector have historically traded at higher multiples due to prospects of high growth associated with successfully tech companies. The information technology sector is young relative to other major sectors as it only began to develop into its current form during the Dot Com Bubble in the late 1990s.
