TECH - Nvidia Tesla Apple And Other Stocks Grossly Undervalued? JPMorgan Analyst Says Magnificent Seven 'Currently Trading Less Stretched Than A Few Years Ago' | Benzinga
Despite ongoing apprehensions surrounding an AI bubble burst, the Magnificent Seven tech stocks appear undervalued when compared to the wider stock market, according to JPMorgan.
What Happened: JPMorgan analysts have indicated that the mega-cap stocks, despite their strong performance, retain reasonable valuations relative to the average prices of the S&P 500 over the last five years, reported Business Insider.
The ‘Magnificent Seven’ — Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon.com Inc (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Meta Platforms Inc (NASDAQ:META), Microsoft Corp (NASDAQ:MSFT), NVIDIA Corp (NASDAQ:NVDA), and Tesla Inc (NASDAQ:TSLA) — make up almost 30% of the S&P 500 market cap.
“The group is currently trading less stretched than a few years ago, given earnings delivery,” the analysts stated. They further noted that these stocks could outperform traditional cyclicals in the face of general earnings disappointment.
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