(Oct 16): For much of this year, global investors have been enamoured with “growth”, chasing large-cap tech stocks, or FAANNG — social media giant Facebook, e-commerce behemoth Amazon.com, smartphone powerhouse Apple, video-streaming pioneer Netflix, artificial intelligence chip leader Nvidia and dominant search engine Google’s parent, Alphabet. The stealth tech stock rally in 2017 has been powered by the development of disruptive themes such as AI, blockchain, cloud computing, big data analytics, the sharing economy, machine learning and deep learning. 

Little wonder, then, that global tech stocks have added a whopping US$2.45 trillion ($3.33 trillion) in market capitalisation over the past 12 months. Chinese tech firms alone have gained nearly US$320 billion in market value over the previous year.  

To be sure, tech is an overcrowded trade. The tech-heavy Nasdaq has risen 22% this year. Nvidia (in which Singapore’s Creative Technology once had a 7.5% stake) is up 78% this year, giving it a market capitalisation of US$112 billion. Netflix’s stock has risen 59% since January, Facebook has gained 50%, Apple 35%, Amazon 32% and Alphabet 26%. The Chinese tech players have done even better than their US counterparts: E-commerce giant Alibaba Group Holding is up 110%, gaming and messaging giant Tencent Holdings 84% and search engine Baidu 57% over the past nine months. 

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