Fears over the tech sector were highlighted after industry leaders, including Apple, Amazon and AMD, offered disappointing revenue forecasts, and as Wall Street frequently downgraded their 2019 forecasts for tech stocks.
According to HSBC, the 2019 earnings-per-share growth expectations for Morgan Stanley's MSCI ACWI IT index, which tracks IT stocks from both developed and emerging markets, have been slashed to 7.5% from 11% over the past two months.
But HSBC's own tech earnings lead indicator, which aggregates a number of the timeliest IT data points, suggests that the sector is not in as bad of shape as feared.
While the bank's lead indicator "had softened slightly earlier this year, alongside a pullback in broader activity data, it has begun to pick up again and it is now at levels consistent with IT EPS growth of above 20%," HSBC said.
"This has been driven by a variety of the underlying series improving, including US durable goods orders of computers and related products, the FRB San Francisco Tech Pulse Index, and South Korea Electronic exports."