KUALA LUMPUR (Aug 4): Investors are still piling into technology stocks even amid mounting worries over valuations following a recent sharp rally in their share prices, an analyst said.
Buying appetite remains firm as investors see few credible alternatives capable of deliverable comparable earnings growth, AmInvestment Bank said in a note. The rising concerns over valuations have yet to translate into meaning selling, the research house noted.
“Instead, investors increasingly view technology as ‘There Is No Alternative’ trade,” the house said.
Shares in the Bursa Malaysia Technology Index have surged 35% so far this year to its highest since August 2024, tracking the massive rally of global peers driven by a boom in semiconductors and artificial intelligence (AI).
ViTrox Corporation Bhd (KL:VITROX), the sector’s biggest company in terms of market capitalisation, has more than doubled to a new all-time high. ViTrox mainly manufactures machines used to automatically inspect and detect defects in semiconductor components and printed circuit board assemblies.
“Unless a new investment theme emerges, capital is likely to remain anchored in AI beneficiaries,” AmInvestment said.