Is 2012 tech’s breakout year?

Associated Press

WASHINGTON

The stock market has had an impressive January.

The staid companies that make up the Dow Jones industrial average have gained 4 percent in three weeks, and the broader market has done even better.

But the Nasdaq composite — a collection of technology stocks whose dot-com heyday was more than a decade ago — has left them both in the dust.

That’s no surprise when you consider tech stocks took a licking last year.

Tech companies tend to carry more risk — a problem for the Nasdaq during last year’s market gyrations.

As investors regain confidence in the economy, riskier plays are doing well.

But experts say the Nasdaq’s gains reflect long-term currents that could lift tech stocks through 2012 and beyond.

Many companies put off replacing worn-out technology during the recession. To compete and survive, they need to invest in tech.

There’s also a growing global market for technology as more nations try to reduce labor costs by automating everything from factories to cash registers.

And the biggest tech companies face less competition these days when they try to acquire smaller companies.

Many of their midsized rivals for those deals were weeded out after the dot-com bust and the financial crisis.