The United States Senate just passed the Tax Cuts and Jobs Act, marking President Donald Trump’s first major legislative conquest. The highlight of the reform is the slash in corporate tax rate from 35% to 20% that is expected to boost the bottom line of  companies.

However, the technology sector is unlikely to benefit much from the reforms owing to the fact that it already enjoys several tax benefits and therefore has a lower effective tax rate. Citing S&P Global data, Bloomberg stated, “Among sectors, the 18.5 percent effective tax rate enjoyed by the group is the third-lowest among U.S. large caps.”

This was also evident from the sector’s not so impressive run in early December 2017 when investors were moving their funds into sectors which had higher scope for gains. As a matter of fact, just after the Republican Senate passed the bill with a 51-49 majority on Dec 2 morning, the Technology Select Sector SPDR ETF (XLK) declined approximately 2% in next two trading days.

Nevertheless, we believe that the technology sector, which has been benefiting from increasing demand for cloud-based platforms, growing adoption of Artificial Intelligence (AI) solutions, augmented/virtual reality devices, and Internet of Things (IoT) related software is capable of regaining momentum in 2018.

In fact, investors also soon realized that the early December plunge across the technology sector is an opportunity to invest in stocks that were too pricey earlier.

Here are a few stocks that saw a decline in their prices in early December following a shift in investors’ focus toward other sectors. But these stocks enjoy strong fundamentals and thus are well poised for growth.

Broadcom Ltd. (AVGO – Free Report) is one such stock which is still available at discount compared with with Dec 1 closing price. We believe that the company has several driving factors, which can help it gain going ahead.

The company is benefiting from strong demand for its wireless solutions. The trend is expected to continue in fiscal 2018. Moreover, the upcoming launch of the next generation WiFi products is expected to be a growth driver for the segment. Additionally, Broadcom’s focus on multiple target markets mitigates operating risks and lessens the exposure to volatility in any single market. Based on its expanding product portfolio, the company is well-positioned to address the needs of rapidly growing technologies like IoT and 5G.