Tech stocks have been sliding amid fears of a looming tech bubble and a government crackdown on the emerging technology sector, which has grown by 30% in the past year.
Read MoreOn Thursday, a report from FBR Research found that the tech industry in the United States lost $2.8 trillion in value in 2016.
That’s down almost $1 trillion from the year before, but it’s still a significant decline from the $4 trillion tech industry lost in 2016 and the $7.2 trillion lost in 2017.
The number of firms listed on the Nasdaq stock exchange plunged $6 billion in 2016, according to FBR’s analysis.
In comparison, the Dow Jones Industrial Average (DJIA) gained $1.6 trillion in 2016; the S&P 500 (SPX) increased $1,054.6 billion; and the Nasda Nasdaq Composite (Nasdaq: NASDAQ) rose $1 billion.
The Nasdaq composite dropped nearly $200 billion in 2017, according FBR.
That decline is not likely to be reversed this year, as investors are still waiting to see whether the Trump administration will loosen regulations on tech companies.
“It’s an industry that’s going to continue to get bigger and bigger, and I think the biggest concern is going to be regulation,” Mark Schoofs, senior economist at FBR, told The Wall St. Journal.
Investors are also concerned about the growth of the emerging market, which includes China and India.
“The biggest concern, I think, is that it’s going away from a place where people are going to buy everything and buy everything cheap,” Mark Williams, president of global research at investment bank Wells Fargo, told CNBC.