The nearly 5% drop for the Nasdaq Composite COMP so far this year could be the start of an unwinding in what has been a profitable sector play for investors over the past two years, although 2025 is still young.

But the key to generating returns for early 2025 has been to avoid those major technology stocks and the Nasdaq-100, according to Societe Generale strategists led by Manish Kabra, who heads up U.S. equity strategy for the firm. The chart below lays out just how painful the year has been for tech stocks.