Latest news with #MagSeven
CNBC
18-07-2025
- Business
- CNBC
International stocks, AI beneficiaries are set to outperform in a complicated second half, JPMorgan Asset Management says
JPMorgan Asset Management says there are two areas where equity investors can continue to find returns in a complicated second half: International stocks and artificial intelligence beneficiaries. Developed markets excluding the U.S. as represented by the iShares Core MSCI International Developed Markets ETF are up more than 17% year to date. Emerging markets as represented by the iShares MSCI Emerging Markets ETF has similarly rallied 17%. Meanwhile, the S & P 500 is up about 7% om 2025. That momentum should carry on in the latter half of the year, per, JPMorgan Asset Management. "We expect this strong momentum in international equities to continue, with some laggards catching up in the second half including Japan and India. We also expect further depreciation of the U.S. dollar, given its elevated level and the clear shift in drivers," they said in their midyear outlook report released Friday. That outperformance comes even as the U.S. increases pressure on the trade front, with President Donald Trump announcing a slew of tariffs on imported goods. "The first half of the year was really all about this huge policy form," JPMorgan Asset Management's Gabriela Santos said. "I think the second half of the years would be much more about understanding the aftermath of that form in specific areas of the economy, specific areas of the market." To be sure, Santos noted that overseas markets are coming off a low base after more than a decade of underperformance, at a time when valuations in the U.S. equity market are stretched and looking highly concentrated. "This is not about the end of U.S. exceptionalism at all. It's about the normalization of the exceptionalism," the group's chief strategist for the Americas said, adding: "We've been talking about this for years, but there's finally been a catalyst to unleash it." Santos also expects artificial intelligence will continue to be a major theme in the market, but urged investors to look elsewhere from the "Magnificent Seven" to the next phase of AI beneficiaries. She noted earnings growth is steadily declining for Mag Seven, which is projected to post 14% earnings growth in the second quarter, down from more than 27% in the first. "We're very positive that the AI theme is real and has come back as a main driving force for the market," Santos said. "But just that, I think what's really encouraging actually about performance this year has been that there's really much more differentiation within that theme, and importantly that it's always on to the next phase, and this is the next phase of the AI theme, which doesn't just benefit that concentrated, concentrated group of large cap tech." She's confident that the theme can expand to utilities and industrials, as well as to AI adopters who are using the technology for productivity gains within their companies, in addition to semiconductors.
CNBC
07-07-2025
- Business
- CNBC
Traders see trouble for Apple despite some recent Wall Street analyst love
Apple shares picked up a gain and an upgrade from Jefferies going into the holiday weekend, but the " Fast Money " traders aren't seeing fireworks. "The back half of the year for a company like Apple is going to be a problem," RiskReversal Advisors' principal Dan Nathan said on Wednesday's show. "They still don't have an [artificial intelligence] strategy. So that means that a product that has not been growing for the last three years is not going to grow again. … They're going to miss an entire year of a product cycle." Jefferies upgraded Apple to "hold" from "sell" on Tuesday and hiked its price target to $188 from $171 a share — citing pulled-in demand due to tariff jitters. The firm is also predicting a good June quarter. According to FactSet as of Thursday's close, there are now just three Apple "sell" ratings on the Street. "Fast Money" trader Karen Finerman is also cautious on Apple – calling it her "least favorite" of the " Magnificent Seven " stocks. The Mag Seven names also include Alphabet , Amazon , Meta Platforms , Microsoft , Nvidia and Tesla . "When you think of who has a supply chain issue the most out of the Mag Seven … they're just in the crosshairs of that," the Metropolitan Capital Advisors CEO said. Meanwhile, Tim Seymour said he thinks a lot of the bad news surrounding China and tariffs has been priced into the tech giant. But the chief investment officer of Seymour Asset Management sees Apple's multiple as the biggest issue. "That should be enough for most people," said Seymour, who still considers himself "more glass half-full" on Apple. The iPhone maker's shares gained 6% during the holiday-shortened week. However, Apple lags behind the Mag Seven index so far this year, off about 15% and up 3%, respectively. Apple will report fiscal third-quarter earnings on July 31.
Yahoo
26-06-2025
- Business
- Yahoo
Advanced Micro Devices, Inc. (AMD) GPUs Could Be Offered To China, Says Jim Cramer
Advanced Micro Devices, Inc. (NASDAQ:AMD is one of the . Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor designer that competes with Intel and NVIDIA in the CPU and GPU markets. It is the smaller rival for both these firms, and a major success has been its ability to eat away Intel's data center market share over the past couple of years due to the latter's manufacturing woes. In the AI wave, Advanced Micro Devices, Inc. (NASDAQ:AMD) has been a distant second to NVIDIA and has failed to capture a major portion of the market. The firm's shares have gained 6% year-to-date primarily on the back of a 10% jump in June. This jump came after analysts at Piper Sandler opined that the firm's GPU business could recover in the fourth quarter of this year. As for Cramer, he wondered whether the US was open to offering Advanced Micro Devices, Inc. (NASDAQ:AMD)'s GPUs to China as part of concessions during trade talks: 'I continue to think that when I look at Advanced Micro stock going up, that Advanced Micro has a GPU like NVIDIA. Not as powerful. Maybe that's who they're offering.' Ahead of the analyst upgrade, Cramer discussed Advanced Micro Devices, Inc. (NASDAQ:AMD) in detail: 'So traders say if I can't make money after Broadcom reporting a great quarter, the playbook says time to move into the lower quality, cheaper stocks that are less likely to disappoint or should never have been down to begin with. I understand the sentiment, but the problem is that these stocks have already rallied pretty hard, too…I saw some upgrades for AMD…. They've moved, especially AMD by the way, on speculation it might be involved with any China deal. Rare earth materials for us, AMD chips for them. A close up of a complex looking PCB board with several intergrated semiconductor parts. Now, this kind of rotation could be a good one. The stocks that are rallying are excellent. They may be just playing catch-up. It's a heavily broadening out of the winners, right? Remember when it was just the Mag Seven? We've come a long distance, but what comes after this could be treacherous. I've seen the end of rallies, and they often take up the laggards last. After it happens, if we have good news, everything's fine. However, if there's any degradation in the numbers, it could get very ugly. Right now we're fine… I've always liked AMD, as you know.' While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-06-2025
- Business
- Yahoo
The Magnificent Seven Stocks Staged a Blistering May Rally. What's Next?
The Magnificent Seven gained more than 13% last month, making the group of big tech stocks one of the best-performing corners of financial markets in May. The group is still trading in the red for the year, but stocks could get a boost from Apple's Worldwide Developers Conference and Tesla's scheduled robotaxi rollout this month. After rebounding from their post-"Liberation Day" slump, tech valuations have returned to historically high Magnificent Seven had a strong May, but the group remains in the red for 2025. What's next? Taken together, the seven big tech stocks—names like Nvidia (NVDA), Tesla (TSLA), Meta Platforms (META) and more—outperformed dozens of other assets tracked by Deutsche Bank analyst Henry Allen last month. The group saw their stocks rise more than 13% in aggregate in May, their biggest monthly gain in 2 years, according to Allen. Nonetheless, the group remains one of the few corners of global markets lower since the start of the year. Of 32 different sets of investments tracked by Allen—including global equity indexes, government and corporate bonds, foreign exchange indexes, and commodities—only one other asset, crude oil, is negative for the year. Whether the Mag Seven can climb into positive territory this month could depend on what Wall Street thinks of a few upcoming corporate events. Apple (AAPL) will host its Worldwide Developers Conference on June 9. The iPhone maker is expected to unveil a software development kit that helps outside developers build features with Apple Intelligence's underlying large language models. That would effectively let Apple outsource some of the work of building AI products for its devices, which could help close the perceived gap in AI capabilities between it and major peers. And around the middle of the month, Tesla (TSLA) is expected to roll out its robotaxi service in Austin, Texas, in what could be a major test of the company's autonomous vehicle ambitions. Apple and Tesla are the worst-performing stocks in the Mag Seven so far this year, with their shares down about 20% and 16%, respectively. Investor enthusiasm about the companies' progress in some emerging areas seen as vital could help lift their shares. Bank of America analysts on Monday upgraded the information technology sector—home to Microsoft (MSFT), Nvidia, and Broadcom (AVGO), the latter a non-Magnificent stock—to neutral from underweight, and downgraded communications services—including Alphabet (GOOG) and Meta—to underweight from neutral. They cited active funds' historically low exposure to IT and high exposure to communications, as well as the communications and media industry's comparatively unpredictable revenue streams. Perceived recession risks have decreased in the last month thanks to easing tensions between the U.S. and China. Lately, though each side has accused the other in recent days of violating the terms of their agreement, demonstrating the fragility of their detente. The Mag Seven's communications companies, Alphabet and Meta, likely have the most recession-proof ad businesses on the internet thanks to the sheer size of their audiences. Yet the tech giants face another risk, according to BofA analysts: Tech companies, they say, addressed elevated interest rates in 2023 by effectively 'shortening duration'—they cut costs, reduced capital expenditures, and increased their cash returns. Today, Alphabet and Meta are locked in an all-out AI arms race, spending tens of billions of dollars a year on AI infrastructure. That spending could tie the companies' hands in the event of a slowdown. Another risk for tech stocks is their price tag, according to BofA. Valuations have declined from their recent highs, but the stocks are still expensive—the Mag Seven's P/E ratio of 33.1 is well above the S&P 500's long-term average—and earnings expectations remain elevated. Read the original article on Investopedia Sign in to access your portfolio
CNBC
29-05-2025
- Business
- CNBC
There's a 'weird dichotomy' between the Magnificent Seven and the rest of the market
Stocks appear to have come full circle since the start of the year, but with one key difference: the "Magnificent Seven" stocks are not as expensive as they were coming into 2025. The S & P 500 is virtually unchanged on the year, following an extraordinary selloff and recovery over the past two months. In that time, the index slumped 20% from its February peak following the April 2 tariff announcement, then made back all those losses. The broader index is now a little more than 3% off its record high. For all off of 2025, the broad market index has eked out a 0.8% gain, not including reinvested dividends. .SPX YTD mountain S & P 500 in 2025 This time, however, there's a different nuance in the market, according to Marta Norton, chief investment strategist at Empower Investments. She pointed out that while the overall market is more expensive than it was at the start of the year, the Magnificent Seven stocks are cheaper than they were. "At the start of the year, the Mag Seven were very expensive, and you felt like that was going to lead the market down. But at this point in the year, Mag Seven is, you know, certainly rallied back a bit, but it's cheaper than it looked at the start of the year, and it's the rest of the market around the Mag Seven that looks expensive," said Norton. "So, there's this weird dichotomy where the area of greatest risk doesn't look to be quite as big a risk, at least from a valuation standpoint, that it had [at] the start of the year," Norton added. Take Nvidia , which started 2025 with a forward P/E of 31.3, is now trading at 29.6 forward earnings, according to FactSet data. Apple , which was at 33.0, now sells for 26.6 times the coming year's profits. Google-parent Alphabet , which was trading at 21.1, is now at 17.7. Amazon , previously at 35.2, now changes hads at 31.3. Only two of the megacaps stocks trade above their Dec. 31 forward valuations. Meta Platforms , which was at 23.0, is now at 24.3. Microsoft , once at 29.9, is now 30.6. Meanwhile, the broader market looks more expensive. The S & P 500, at 21.3 currently, is trading about where it was in December. But consumer staples companies were at 18.6 times at the end of last year, and are now at 19.9. The cheaper Mag Seven valuations suggest there could be some momentum left in the market even after its huge upswing since early April, since the elite group combined accounts for roughly 30% of the S & P 500 market value. Norton, however, is skeptical the market will rally meaningfully higher in 2025. She thinks the S & P 500 will be rangebound for the rest of the year as expensive valuations in the rest of the market, as well as the impact of tariffs on corporate earnings, will offset any benefits from deregulation later this year. "Should we see the Mag Seven continue to recover, that would certainly be a force for strength in the market, but we still have to watch that remaining 70%," Norton said. Other Wall Street firms are sounding similar concerns. In fact, a note from UBS said that "MAG-7 dominance risk has yet again returned" following Nvidia's latest earnings beat, a development that suggests the market is "now priced for perfection and is vulnerable to even slightly disappointing news."
