The tech sector has led the headlines with a flurry of M&A deals in the recent weeks. So are there any buys that are still out there for investors? Kennard Allen, portfolio manager at T. Rowe Price Science and Technology Fund, shared his sector outlook.
“In 2009, the tech sector was up 50 percent and so far this year, while we started fairly well in the first quarter, we’ve had a big dropoff since late April,” Allen told CNBC.
“Innovation is continuing at a very fast pace, with trends like mobile computing and cloud computing," he said. "I wouldn’t say that the space is cheap or expensive, but we’re finding a lot of good opportunities right now.”
Allen says he favors the undervalued “pure-play software businesses” such as CA and Microsoft .
Scorecard—What He Said:
- Allen's Previous Appearance on CNBC (Aug. 12, 2010)
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Allen does not own shares of AAPL, GOOG, SYNA, SNDK, MU, MSFT or CA.
The T. Rowe Price Science & Technology Fund owns AAPL, GOOG, SYNA, SNDK, MU, MSFT and CA.