US technology stocks are rising rapidly in the near future and are expected to achieve the best performance in 10 years.


Editor’s Note: This article is from Tencent Technology, and 36 is authorized to be released.Technology stocks in the Standard & Poor’s 500 Index (S&P 500) have risen 41% this year, far exceeding the 24% increase in the S&P 500, and are expected to achieve the biggest annual increase since 2009.On November 20, according to foreign media reports, the current technology stocks are rising rapidly, and it is expected to capture the best performance since 2009, which also highlights the continued interest of investors in various technology companies.In a bull market that has been in existence for more than 10 years, investors prefer fast-growing, relatively high-priced companies’ stocks relative to lower-valued company stocks.Although undervalued stocks have rebounded in the past three months, technology stocks are still the market leader: technology stocks in the S&P 500 have risen 41% this year, far exceedingThe 24% increase in the S&P 500 is expected to achieve the biggest annual increase since 2009.Despite this, investors still need to deal with the various problems that arise in the field of technology.These include how large technology companies deal with user data and how to deal with antitrust investigations.For many fund managers, the rising of technology stocks also reflects their confidence, and firmly believe that technology companies will continue to achieve strong sales and profit growth.“This is a long-term growth area, so the price of technology stocks is always good,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management.But after the FAANG stocks such as Facebook, Amazon, Apple, Netflix and Google’s parent company Alphabet rose in early 2018, this year’s return rate was mixed.Of the five stocks, only Apple and Alphabet have successfully climbed to new highs in recent months.However, the growth of other technology stocks continues to increase.The biggest winners in the technology industry today are semiconductor manufacturers and companies that produce chip manufacturing equipment.Shares of Applied Materials, the world’s largest semiconductor equipment supplier, rose 86% this year, while Tokyo’s top chip equipment company, Tokyo electronic, rose 83% this year, and Dutch lithography giant ASM Moore (ASML Holding)NV) rose by 79%, and the US semiconductor equipment company Lam Research has more than doubled.John Freeman, vice president of equity research at CFRA, a market research firm, said: “It is these companies that enable semiconductor manufacturers to produce chips with higher transistor densities.” “They hold the key technologies, so they masterThe pricing power of related fields.” The company’s stocks focused on electronic payments also performed well, which investors believe is mainly due to the popularity and development of electronic payment technology worldwide.Tom Plumb, president and portfolio manager at fund company Plumb Funds, said, “If you told me 20 years ago, I would come up with my Visa card and pay 1 in a square in Madison, Wisconsin.I will say you are crazy about the parking fee of the US dollar, but now they only accept this way.” Palangbo said that the largest stock his company holds is Visa, which has risen 39% this year.The company also holds MasterCard’s stock, which has risen 51% this year.Driven by increased spending on credit and debit cards, the two companies posted better-than-expected earnings in the latest fiscal quarter.What is certain is that after a sharp rise in the round, some investors said they believe that some of the stocks in the technology sector may rise too much.A survey conducted by Bank of America earlier in November showed that nearly one-third of fund managers believe that the most transactions in the market are betting on the rise of US technology stocks and other fast-growing companies.In such an area that is particularly dependent on innovation, some companies will be better investment options than others.”You sit at the top of the world, it doesn’t mean you will stay there all the time,” Freeman said.For example, he said that Oracle’s stock, one of the world’s largest software companies, has grown by 25% this year, but it may still be at risk because it is too late to enter the cloud computing market.Then there is the income.According to market research firm FactSet, among the 11 sectors of the S&P 500, technology companies experienced the largest decline in profits in the third quarter.The industry’s profit for the quarter was down 5.4% from the same period last year, while the S&P 500 index was down 2.3% overall.In the past few months, the growth momentum of a few technology companies has slowed down.Amazon reported its first earnings decline in more than two years in its quarterly earnings report, and Netflix failed to achieve its user growth target for the second consecutive quarter.But fund managers say that technology stocks continue to rise anyway, in part because investors are expecting lower earnings.According to FactSet, as of June 30, analysts had expected the technology industry’s third-quarter profit to fall by 9.4%.Nixon said that after the second half of the year, executives in the technology industry have succeeded in lowering investor expectations, making even relatively weak companies perform better than people expected.This gives fund managers reason to buy technology stocks that are already very expensive.FactSet’s data also shows that the price-earnings ratio of the S&P 500 index technology segment is about 21 times.In contrast, the S&P 500 has a P/E ratio of 18 times.“We are looking for opportunities in this environment,” said Eric Wiegand, portfolio manager for Bank of America’s private wealth team.(Tencent Technology Review / 皎晗).