JPMorgan Securities lowered its IT spending growth outlook for 2012 citing a slowdown in global production trends and spending by China, amid rising macroeconomic uncertainties in Europe and the United States.
JPMorgan technology analysts lowered their forecast for global IT spending growth to 2.2 percent from 3.8 percent for the year.
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"We are concerned that the region (China) could be a source of increasing uncertainty for most technology segments," they wrote in a research note to clients.
"The absence of incremental economic stimulus activity in China has been a headwind, and there is not much visibility on a potential turnaround as the new government transition expected in October could be disrupted by ongoing political struggles."
In a separate note, the brokerage lowered its price targets on several Internet companies, including Google Inc <GOOG.O> and Amazon.com Inc <AMZN.O>, on weaker international currency and potential macro economic challenges.
The brokerage cut its revenue growth estimates for most IT hardware segments, with the exception of tablets, mainly on increasing downside risk from macroeconomic concerns.
Growth for software companies is expected to be lower at 2.5 percent, compared with their previous estimate of 5.5 percent.
"We believe that about 35-40 percent of software growth is at risk as European, U.S. government, and financial services spending slows as the result of economic turmoil," it said.
The brokerage now expects the IT services industry to grow at about 1.3 percent in 2012, down from 3.1 percent.
"As part of our 2012 IT spending growth cut, we identified 23 stock ideas (long and short) to help investors play defense in uncertain times."