Forget FANG. These four tech stocks are outperforming this year, adding $600 billion in market cap

"FANG" is so yesterday.

The so-called FANG stocks – Facebook, Amazon, Netflix and Google-parent Alphabet – are surging this year, up a respective 58, 52, 58 and 32 percent and adding a combined $600 billion in market cap. Despite the monster gains, another group of tech stocks is still outperforming.

On a price return basis, Chinese internet stocks Sina, Tencent, Alibaba and Baidu are trouncing their U.S.-based rivals. So far this year Sina has rallied 84 percent, Tencent and Alibaba have more than doubled, up 127 percent and 117 percent, and Baidu has surged 50 percent. The four names have also added a combined market capitalization of roughly $600 billion this year.

At this juncture, some strategists and technical analysts see even further room to run despite their hefty gains this year.

"This group is in an outstanding technical position here," said Rich Ross, head of technical analysis at Evercore ISI.

Ross pointed out that on a year-to-date chart of Chinese e-commerce website Alibaba, the stock has managed to trade above its 50-day moving average for the bulk of this year. The longer-term chart is similarly bullish, Ross said Monday on CNBC's "Trading Nation," pointing to a rounded base of support extending back three years around the $60 mark.

The substantial growth of internet users in China is key to driving these stocks in recent months, said Gina Sanchez, CEO of Chantico Global.

"At some point, that's going to exhaust itself, but we're not there yet. And that's one of the reasons why I think that this probably looks good from a technical position, because there's still a lot more to go," Sanchez said Monday on "Trading Nation."

She added: "These companies are huge, they're large, but they still don't have full market penetration in a massive, massive population. So I do actually think that there are probably more legs to this story."

On Tuesday, shares of Tencent hit a record high. Elsewhere in the space, the tech-heavy Nasdaq reached an all-time high.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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