Introduction: Is the Tech Hype Over — Or Just Beginning?
It’s 2025, and US tech stocks are back in the spotlight.
After a volatile few years marked by rate hikes, AI disruption, and macro uncertainty — the Nasdaq has rebounded strongly. Some big names even hit new all-time highs.
But is it still worth investing in tech?
Or have we already missed the boat?
For Malaysians watching from the sidelines (or holding a few US stock positions already), this post unpacks the current tech landscape — the upside, the risks, and how to get started smartly in 2025.
1. Tech Stocks: Quick Recap of Recent Years
Here’s how things have unfolded:
| Year | Major Events | Market Impact |
|---|---|---|
| 2021 | Tech boom continues post-COVID | Nasdaq +21% |
| 2022 | Inflation + rate hikes hit valuations | Nasdaq -33% |
| 2023 | Recovery begins, AI narrative builds | Nasdaq +43% |
| 2024 | Generative AI explodes, chipmakers rally | Big tech leads recovery |
| 2025 | AI productivity starts delivering results | Selective tech outperforms S&P 500 |
Big winners like Nvidia, Microsoft, Meta, and AMD have driven much of the gains — but even less hyped companies like ServiceNow, Snowflake, and Arm are growing fast.
2. Why US Tech Still Has Room to Run in 2025
🚀 1. AI Adoption Moving from Hype to Productivity
AI was last year’s buzzword — but in 2025, it’s becoming mainstream in business ops.
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Enterprises are integrating AI to reduce costs, streamline hiring, and boost output
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Companies building foundational models (OpenAI, Anthropic) are getting big investments
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Hardware (GPUs, data center chips) continues to be in hot demand
Malaysia’s own tech firms are riding this demand via the semiconductor supply chain.
🌍 2. Global Demand for US Tech Products Still Strong
Despite geopolitical tensions and some reshoring, US firms dominate:
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Cloud services (Amazon, Google, Microsoft)
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AI tools and platforms
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Software-as-a-Service (SaaS)
Their global customer base ensures resilience even when local economies slow.
💡 3. Innovation Keeps Flowing
The US tech sector remains a magnet for talent and capital.
Trends worth watching:
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AI + robotics (Boston Dynamics, Tesla)
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Quantum computing (IBM, IonQ)
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AR/VR (Apple Vision Pro rollout)
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Renewable tech + smart grid (Tesla, Enphase)
Investing in tech is a bet on future productivity, not just short-term earnings.
3. What Malaysians Should Consider Before Investing
🔁 Currency Risk
US investments are in USD — if the Ringgit weakens further, your returns in MYR improve.
But if USD drops, your gains may shrink.
✅ Tip: Use platforms like StashAway, Syfe, Wahed to invest in USD-denominated ETFs. These platforms help manage FX conversion and fees automatically.
🧠 Knowledge & Emotional Readiness
Tech stocks are volatile.
If you panic during a 10% dip — tech may not be for you.
But if you understand the long-term thesis and ride the waves — tech can be hugely rewarding.
4. How to Get Exposure to US Tech Stocks
🔹 Direct Stocks (via brokers like IBKR, Moomoo, Rakuten US)
You can buy:
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Individual companies (Apple, Nvidia, Meta)
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But you must do your own analysis
🔹 Tech-Focused ETFs
| ETF Name | Exposure | Ticker | Annual Return (5Y Avg) |
|---|---|---|---|
| Invesco QQQ | Top 100 Nasdaq stocks | QQQ | ~16% |
| Vanguard Info Tech | Broad tech industry | VGT | ~18% |
| Global X Robotics | Automation + AI | BOTZ | ~12% |
| ARK Innovation | Disruptive tech (high risk) | ARKK | ~10% (high volatility) |
✅ ETFs are great for diversification and hands-off investing.
5. Case Study: Investing with RM1,000 Monthly
Let’s say you start now, investing RM1,000/month into a tech ETF like QQQ.
At an average return of 10%:
| Time Horizon | Total Invested | Portfolio Value |
|---|---|---|
| 5 years | RM60,000 | ~RM77,000 |
| 10 years | RM120,000 | ~RM190,000 |
| 20 years | RM240,000 | ~RM590,000 |
💡 Investing in tech is less about “timing” and more about time in the market.
6. But What About the Risks?
Tech investing isn’t risk-free.
🔻 Valuation Risk
Some stocks still trade at high P/E ratios — any slowdown may hit them hard.
🌐 Geopolitical Risk
US-China tensions, export restrictions, or cybersecurity regulations could impact global operations.
🧮 Regulatory Risk
Antitrust pressure is building on big tech (especially Meta, Google, Apple) from US and EU regulators.
✅ Don’t go “all-in” on a single name. Diversify with ETFs or across sectors.
7. Should You Still Buy Now — or Wait?
Yes, valuations have risen — but waiting forever for a “crash” often means missing the gains.
✅ Best approach?
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Start small
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DCA monthly
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Rebalance your portfolio every 6–12 months
Don’t try to guess the top or bottom. Ride the trend with discipline.
8. Should Malaysians Worry About Withholding Tax?
Yes, US dividends are subject to 30% withholding tax.
Example:
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Apple pays $1 dividend/share → You receive $0.70/share
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Malaysian tax-residents cannot offset this unless via treaty (not applicable directly)
✅ Solution: Focus on growth tech stocks or accumulation ETFs that don’t pay out dividends (e.g. QQQ, VGT)
Final Thoughts: Stay Smart, Stay Global
The world is getting smaller.
Malaysians no longer need to limit investing to local stocks and fixed deposits.
The US tech sector remains a powerhouse of innovation, profitability, and global impact.
If you're ready to embrace long-term investing — and can stomach some short-term volatility — tech remains a smart play in your portfolio.
✅ Start small
✅ Automate your contributions
✅ Keep learning
Because while trends come and go, technology isn't going away.