The illusion surrounding technology stocks is found not just in their escalating values, but in their extraordinary capacity to redefine valuation principles and connect financial resources to future prospects. For those investors who walk the delicate line between risk and benefit, these shares create legends through concealed rationales—stories, industrial collaboration, and the reassessment of worth—that go beyond standard market behavior.

Numerous non-profitable technology startups are still valued at extremely high market levels not due to their present income sources, but because of their engaging stories concerning technological advantages and the growth of ecosystems—stories that persuade investors to wager on a future that conventional financial indicators such as price-to-earnings ratios or profit margins do not adequately capture.

Narrative-Driven Valuation Reconstruction

Technology shares flourish through narratives that transform possibilities into premium valuations. In contrast to conventional sectors dependent on existing profits, tech companies utilize innovations—like open-source artificial intelligence frameworks or the commercialization of robotics—to build stories focused on the future. This change in perspective shifts attention from price-to-earnings ratios to "narrative worth," allowing unprofitable AI chip manufacturers to eclipse the market capitalization of century-old consumer brands, as investments pursue the allure of sculpting the next era.

Industrial Positioning through Mergers

Legends are amplified through strategic acquisitions. Technology companies strive to buy listed platforms to ensure flow of capital and industrial assets, such as robotics firms acquiring A-share corporations to speed up commercialization. This initiates a chain reaction: one acquisition can spark stock price increases by a factor of ten, as the market anticipates the advantages of cross-industry collaboration that extends beyond existing fundamentals.

Valuation Discount Reassessment

The global capital's adjustment of "valuation discounts" fuels the creation of myths. Tech assets in emerging markets, which were previously undervalued against their U.S. counterparts, undergo significant revaluation when innovations demonstrate their competitiveness—such as domestic open-source initiatives achieving global performance standards. For astute investors, this correction process serves as a reliable myth-maker, transforming overlooked assets into favored market components.

The myths within technology extend to lesser-known industrial networks. A singular launch of an artificial intelligence model enhances not only chip manufacturers but also cooling technology providers, backup power companies, and edge computing enterprises. These specialized entities, neglected by larger markets, emerge as unexpected success stories, generating multi-layered wealth effects that strengthen the legend of infinite growth within technology.

Policy-Supported Capital Concentration

Policy initiatives funnel capital into technology sectors, creating myths. Supportive regulations such as merger guidelines and encouragement for innovation direct institutional investments towards hard technologies—semiconductors, robotics, and AI. This influx of financial resources transforms sector-level growth into individual stock narratives, as regulatory certainty diminishes risk perception for major investors.

Dual Nature of High Volatility

Volatility itself nurtures the myth. The extreme fluctuations of tech stocks foster tales of instant wealth, eclipsing long-term challenges. For wealthy investors, this instability is not seen as a drawback but as a chance—leveraging market fluctuations to amass essential assets while the wider market focuses on the myth of rapid profits, further propelling price movements.

The myths surrounding tech stocks are not random; they arise from a combination of capital, narratives, and the evolution of the industry. For those who understand the foundational logics, the myth represents a calculable trend—transforming technological potential into lasting riches that go beyond transient market excitement.

（Writer：Ganny）