Investors are making cautious decisions about tech investments in 2022.

Some investors worry that big technology stocks may find it harder to reap big gains this year amid tight valuations, expectations of higher Treasury yields and a more hawkish Federal Reserve.

Saira Malik, chief investment officer at global equities of Nuveen, said rich valuations of technology stocks could make them more vulnerable to higher yields. This will be triggered by the Fed’s plans to raise interest rates in 2022.

She said: “The broad returns in tech that we’ve seen in the past year have been based in part on supportive monetary policy that we won’t see in 2022.”

In a report released on Tuesday, UBS highlighted the state of tech stocks and investments.

“We no longer see [mega-caps] as the best place to look for outsized returns in the tech sector. We expect more value to come from artificial intelligence, big data, and cybersecurity,” the UBS report said.