Tech's Magnificent 7 Look Undervalued But Still Face Bubble Risks
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Mega-cap tech stocks like the "Magnificent 7" look undervalued compared to the rest of the S&P 500 based on historical pricing, says JPMorgan.
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The group is trading at less stretched valuations now compared to a few years ago given their earnings growth.
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They still face downside risk if they disappoint the high earnings expectations investors have set.
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The Magnificent 7 make up nearly 30% of the total S&P 500 market cap, raising bubble concerns.
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Some AI leaders like Nvidia have seen their stocks surge 75% this year amid strong demand signals.