3 Signs For a 2012 Tech Boom

NEW YORK ( TheStreet) - With record amounts of cash on corporate balance sheets and several new exciting products on deck, 2012 could be one of the better years for the technology sector.

Here are three major trends that could drive tech sector growth during the coming 12 months.

Consolidation

We are starting to see another wave of consolidation in the tech sector, as evidenced by Lam Research ( LRCX) and Novellus Systems' ( NVLS) recent decision to merge and Blue Coat Systems' ( BCSI) plans to sell itself to an investor group. There have also been rumors that Apple ( AAPL) may open up its wallet for Flash memory company Anobit.

With over $2 trillion in cash sitting on corporate balance sheets at the end of the third quarter, there's significant firepower waiting to be deployed to help companies continue to grow.

Combined, heavy hitters such as Microsoft ( MSFT), Apple ( AAPL), Cisco Systems ( CSCO) and Google ( GOOG) have over $226 billion in cash on their balance sheets. Additionally, IBM ( IBM) intends to spend up to $20 billion on acquisitions through 2015. Clearly, there are ample amounts of tech sector cash waiting to be deployed.

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