Professor Jeremy Siegel of Wharton School said it is unclear whether “7 epic” companies will continue to enjoy the running they had, and hopes that other sectors will start to outperform. Masu. “We have these two markets. We have Mag Seven, which is sold by Extesla at 30, 35. After that, 493 other shares have been sold to 19. This makes very reasonable to me,” Siegel told CNBC's “Squawk Box” on Wednesday, referring to the stock's valuation on a price-revenue basis. “I often talked about 20 years old as an equilibrium P/E, so it really depends on what happens in that section.” “Will that sector be the next bull market leader?” he I asked. Mag 7 shares, which account for about a third of the S&P 500, have won the majority of the benchmarks over the past two years as investors have accumulated into the artificial intelligence trade. Nvidia alone has increased by 84% over the past 12 months. However, businesses are about to start 2025. This is a cheap open source AI model that has increased the fear of growing competition, especially after Deepseek's announcement. The Mag Seven Companies are divided into two camps when it comes to performance. Metaplatforms are far from winners, up 23% this year, marking its last 17-day winning streak. This is the longest component of the Nasdaq 100, dating back to 1985. Meanwhile, Tesla has dropped by nearly 19%, while Apple has been off more than 7%. Meta Ytd Mountain Meta Platforms Siegel said he will wait to spend money on tackling the Megacap Tech giant, preferring smaller and intermediate stocks with more attractive valuations. “I'll be cautious about Mags7,” Siegel said. “I like other groups, meaning I'm 19 years old, I like them and know what we've talked about. [it] For a long time, and certainly they are behind. You know, you go to the middle cap, go to the small cap, go to 15, 14, 13. , 15, 18, they'll be leaders, “Siegel continued.” The problem is, I think this competition can reduce the margins now. Will they be leaders for the next 12 months? I want to give you an answer about it, but I think we just have to wait for the data and look. ”
