Technology companies have been a driving force behind the U.S. stock market’s recent record rally, and despite mounting evidence of stretched valuations the sector remains a top pick for investors expecting a wave of capital expenditures by U.S. corporations.

Corporate tax cuts and reduced regulations planned by President Donald Trump will give companies reason to spend more on cloud computing, factory automation and smart connectivity that will directly benefit Silicon Valley, many on Wall Street believe.

“The tax cuts are going to promote business investment across all industries, and the business investment is largely going to be in technology,” said Doug Cote, chief market strategist at Voya Investment Management in New York.

Strong performances from big names including Apple Inc (AAPL.O) and Facebook Inc (FB.O) have helped make technology the strongest S&P 500 sector so far this year, surging 10 percent compared to the broader index’s 6 percent rise.

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