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3 Reasons Why We Won't See a Tech Bubble (Update 1)

Updated from 10:56 a.m. EST to provide additional analysts comments about risk in the eighth and fifteenth paragraphs.

NEW YORK ( TheStreet) - Now that Apple (AAPL - Get Report) has crossed $500 per share, Microsoft (MSFT - Get Report) has crossed $30 per share again, and seemingly every story has an "iAngle" to it, there has already been some chatter about another tech bubble.

Morgan Stanley (MS), in a recent report, highlighted the run-up in mega-cap tech valuations, asking whether this is the precursor to a bubble.

Morgan notes that 20% of the market cap of the S&P 500 is in technology, but says that mega-cap technology stocks are more attractive than other mega-cap stocks in other sectors.

The report goes on to say that tech valuations are not stretched, and sectors like "software, hardware, and Internet stocks are more relatively attractive then semiconductors or IT services..."

Here are three reasons why technology stocks are not in a bubble.

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