2024-08-02 06:45:00 ET
The "Magnificent Seven" dominated the stock market since the launch of ChatGPT in late 2022, and it's easy to see why.
These seven stocks, which include Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) , Microsoft , Apple , Nvidia , Amazon , Meta Platforms , and Tesla , are the largest U.S. tech stocks on the market, and all play various roles in the artificial intelligence (AI) revolution.
This elite group of stocks now makes up roughly a third of the value of the S&P 500 , but their gains haven't come purely from increased earnings. Valuations have gotten stretched along the way, and of the seven stocks, only two trade at a discount to the S&P 500, which is valued at a price-to-earnings (P/E) ratio of 28.4. Those are Meta Platforms, which currently trades at a P/E of 25.4, and Alphabet with a P/E of 24.5, which is about as cheap as it's been in the last year.
For further details see:
This Is the Cheapest Magnificent Seven Stock. Is It Time to Buy?