Technology stocks can notch further gains even as investors move beyond pandemic trades, according to Principal Global Investors.

Cheap borrowing costs and the growing importance of intangible assets mean that some tech firms can surge even amid a market rotation toward value and cyclical names, said Alan Wang, a portfolio manager at the global equities arm. The past year is proving to be a lesson in valuing technology companies the right way, he said.

“Never underestimate the impact of technology,” Wang, who helps manage about $507 billion of assets in Hong Kong, said in an interview. “We see a huge re-rating of new technology companies no matter if they are making electric cars, ventilators or vaccines.”

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