Citi highlights Info Tech as an Overweight sector heading into Q4
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Citi's U.S. equity research team outlined in an investor note over the weekend that they are overweight information technology heading into Q4 of 2023. 
More specifically, the financial institution is overweight software & services, while at the same time holding a market weight stance as it pertains to semiconductors & semi equipment along with technology hardware & equipment.
âInformation Technology moves to Overweight. The toggle here is with Hardware, which we had lowered to UW headed into Q3. That call has played out,â Citi stated.
Regarding the software & services subcomponent of Info Tech, Citi stated that fundamentals are positive and that the sales trajectory remains strong despite some margin erosion, which now seems to be stabilizing.
Citi also informed its clients that the semiconductor space shows that valuations have gotten extended and margins have compressed. At the same time, the bank said that tech hardware & equipment fundamentals read as neutral, with valuations remaining somewhat stretched.
Additionally, Citi also listed some of its Buy and Sell rated stocks by ETR. Some names included the likes of mega cap household names such as Microsoft (NASDAQ:MSFT), NVIDIA Corp. (NASDAQ:NVDA), and Apple (NASDAQ:AAPL). See complete list below:

For reference:
ETR refers to the estimated total return. Regarding the rating system, 1 is Buy, 2 is Hold, 3 is Sell - 1H is less conviction Buy than 1 but more than 2.
For investors looking for broad Info Tech exposure, they can also turn their attention towards grouping of exchange traded funds that offer direct exposure to the segment. See listed below a handful of funds along with their 2023 yearly performance.

Technology Select Sector SPDR Fund (NYSEARCA:XLK) +33.9%.
Vanguard Information Technology ETF (VGT) +32.1%.
Invesco S&P 500 Equal Weight Technology ETF (RSPT) +16.6%.
VanEck Semiconductor ETF (SMH) +45.2%.
iShares Semiconductor ETF (SOXX) +38.5%.
iShares Expanded Tech-Software Sector ETF (IGV) +33.3%.
First Trust Cloud Computing ETF (SKYY) +32.2%.


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