Magnificent 7 Stocks Hit 7-Year Valuation Low Amid AI, Trade, and Antitrust Pressures
Goldman Sachs reports the Magnificent 7 stocks—including tech giants like Nvidia (NVDA) and Tesla (TSLA)—are trading at their lowest valuations relative to the broader market in seven years. The slump reflects mounting pressures from AI investment uncertainties, trade policy risks, and antitrust litigation. Apple (AAPL) and other Nasdaq-listed leaders face continued valuation compression in early 2025.
Strategist David Kostin highlights the rare discount, noting the group’s underperformance contrasts with their historical dominance. The trend underscores growing investor caution toward mega-cap tech amid regulatory and macroeconomic headwinds.