Global tech stocks surge as US rally triggers a rush for winners
stock euphoria is spilling over to the rest of the world. Beaten-down shares of tech companies — from software and IT services providers to hardware manufacturers to ecommerce plays — are making a comeback across the word, as the headline-grabbing Wall Street rally in the US prompts a relook elsewhere. The MSCI Japan IT index has surged 36% so far this year, while the MSCI Taiwan and Europe IT indices have rallied 30% and 25%, respectively.
The MSCI Korea IT index has risen 31% since January 1. China remains an outlier, weighed down by economic troubles in the world's second-largest economy. German software company SAP SE's share prices have rallied 31% so far this year on a positive outlook.
The enterprise resource planning giant reported earnings and revenue for the March quarter that beat analyst expectations. The stock now trades at a price-to-earnings (PE) ratio of 77 times compared with its five-year average PE of 34. Canadian ecommerce software firm Shopify has rebounded nearly 91% so far this year, recouping some of the 73% plunge last year.
In January, the business solutions provider hiked contract prices for merchants. Europe's most valuable technology company ASML Holding NV has rallied 24% in 2023 after losing 29% in 2022. Bank of America last month said ASML could be one of the best artificial intelligence (AI) plays aligning it with the mind-boggling surge in Nvidia's shares, the chipmaker that sparked the AI-led tech rally.
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