When it comes to technology stocks, the conversation always seems to go in the same direction.
Software. Semiconductors. Maybe a little AI sprinkled in. That’s where the spotlight is.
But what about the other side of that trade?
What about the companies actually building the infrastructure that all of this depends on?
Because last I checked, software doesn’t run in the air. Chips don’t just float around on their own.
All of it needs to live somewhere. It needs to be built, stored, connected, and powered.
That’s the hardware.
While everyone is busy chasing the same crowded trades, this entire group keeps quietly showing up with relative strength. Not headlines. Not hype. Just price.
So the real question is simple.
If the parts everyone is talking about need a physical home, what happens when the market starts paying attention to the ones providing it?
The ETF That Disappeared
Here’s what really has my attention.
While this entire group has been quietly trending higher, the S&P 500 Technology Hardware & Equipment Index is now pressing right up against new all-time highs.
And right before this move even got going, the ETF tracking this space was pulled.
In May 2020, State Street shut down the technology hardware ETF.
Right before the index went on to triple:
If you’ve been around long enough, you know this is how it tends to go.
They pulled the coal ETF before coal ripped. They shut down the wheat ETF before wheat prices exploded. Frontier markets got the same treatment right before one of their best runs ever.
It is almost like the ETF graveyard is where future leaders go to hide.
So, no, it’s not surprising they pulled the hardware ETF right when investors needed it most.
But here’s the part that matters.
Even without an ETF, the stocks themselves never stopped working.
When you overlay this group against the S&P 500, you see a massive base in relative strength that’s been building for years:
And those kinds of bases do not resolve lower in strong uptrends.
They resolve higher.
So now we’re left with another straightforward question.
If this base breaks out to new highs, what does that mean for the individual stocks underneath the surface?
The Stocks Themselves
I don’t trade ETFs. I use them for information. For context. For following trends.
In this case, the ETF is gone. Pulled right before the move. So if you want exposure, you have to go straight to the source.
You’re looking at names like Arista Networks (ANET), Sandisk (SNDK), Western Digital (WDC), and Dell Technologies (DELL).
These aren’t small, speculative bets. These are all $100 billion companies. Add Seagate Technology (STX) and you’ve got another heavyweight.
That’s your core group. But it doesn’t stop there.
Shift over to communications equipment and you’re seeing the same thing. Different sector. Different label. Same behavior. Higher prices:
Now you’re talking about Cisco Systems (CSCO), Motorola Solutions (MSI), Ciena (CIEN), Lumentum (LITE), Ubiquiti (UI), and AST SpaceMobile (ASTS).
Take it global and the story holds up. Nokia (NOK). Ericsson (ERIC). Logitech (LOGI).
Same theme. Same trend. Same quiet strength.
This is not some niche corner of the market. This is the infrastructure behind everything everyone is so excited about.
The chips need hardware. The software runs on hardware. The networks depend on hardware.
While everyone is arguing about AI winners, this entire group has already been winning.
No ETF. No headlines. No hype.
Just price.
And if there’s one thing we know, it’s that price doesn’t lie.
So if this is where the strength already is, the question isn’t whether it matters.
The question is how much longer people can afford to ignore it.
Stay sharp,
JC Parets, CMT
Founder, TrendLabs