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00:00 Eric
I mean the Mag 7 have become the Lag 7, right? They’ve generally been lagging for six months or more now. Um, but there’s still a lot of momentum behind the businesses. One of the reason why they’re trading off is not so much that the business momentum isn’t there. It’s over this concern over the level of CAPEX that they are guiding ever so increasingly more. And so if we get some type of moderation in that, that’ll also be highly useful for these names. I don’t expect that in this quarter per se, but just to put some valuation numbers behind it. Uh, you know, Nvidia is now trading at 25 times forward earnings. Meta is now trading at at 19 to 20. That’s basically in line or lower than the S&P 500 for growth that is multiples higher. So the risk reward for some of these names looks really really compelling.
00:36 Brian
Brooke came me with a uh a look at some of these Nasdaq names. Now, not all Nasdaq stocks are being traded or being treated equally right now. Still seeing some weakness in software, but we are seeing the broader Nasdaq come back alive even if it’s just for the past day and a half.
00:50 Brooke
Brian, I was actually just looking at the YF Interactive to see where these players open. If you take a look at intraday trading, what we’re seeing here is pretty much green across the board led by Micron up nearly 7%. Nvidia moving higher as well. Amazon, Broadcom, Apple, Google just reversing into the green there as we kick off this today’s trading session, Microsoft, Tesla, Meta, all in the green this morning. Even Palantir moving higher up more than 2%. But if you take a look year to date, a bit of a mixed picture here. Apple, Microsoft, Meta seeing some downward momentum about 5%, whereas Google, as we discussed a lot during the month of December, that Gemini product really a star to kick off 2026, sending that stock to move higher up more than 6% and Nvidia trying to hold on to some momentum up more than 1%. But certainly all eyes are really on Big Tech, Microsoft, Alphabet and Amazon as we make our way into this uh this earnings season. Really that momentum needs to hold on for these hyperscalers.
01:52 Brian
And as you heard Eric call out some of the uh valuations, Nvidia 25 times forward earnings, Meta 18, 19 times forward earnings. I take that as back up the truck levels. Now I’m not saying go out and buy these stocks, but now could be the time where you back up that truck and you reassess some of these names.
02:12 Speaker C
Yeah, certainly it’s a time to reassess some of these names. and also, I mean, you you’re talking about the Nasdaq and the and and um that this could uh go higher as far as the this AI tech trade. I’m looking at some of the semiconductor stocks. I mean, you mentioned TSMC, but if you take a look at Micron, uh year to date, look at Micron what it’s doing today. You have a director that just bought 23,000 shares in the open market and it’s at all-time highs and the street is expecting a Wall Street price target of around $340. I mean, it’s pretty much around it’s it’s beyond that. So you so obviously, that’s bullishness uh for the stock because you’ve got an insider that’s that’s buying it. Um and then you’ve got the whole uh you’ve got ASML that’s up double digit percentages. This has only been like two weeks of the year and you’re seeing these big gains in these semiconductor stocks. So, uh yeah, look, if you take a look at what just Brooks showed you, I mean, the Mag 7, there’s some mixed, there’s, there’s some weakness year to date when you talk about some of these Mag 7s, but they’re not falling off a cliff.
03:07 Brian
Very important point there. Insider belly, insider buying is better to see than insider selling. Eric, let me get back to you here. Out of all the Mag 7 names, again, they have been under pressure to start the year. Are there one or two that you really like into earnings and if so, why?
03:26 Eric
Yeah, I think Nvidia is one. Um you know, you’re still looking at a business, guys that’s growing 60 to 70% revenues and EPS. The TSMC uh print yesterday was a great read through, basically uh accelerating their guidance on accelerated AI chips, uh 55 to to to 60%. So, Nvidia looks great. You know, they’re they’re talking about a half a trillion dollars uh of visibility on their high-end chips uh this year. So, that should be good based on this price weakness. Same thing with Meta, like I said earlier. Meta is interesting because it’s the single AI use case that’s actually being deployed at scale to generate billions of dollars of profits for a company in terms of the increased efficacy of the advertising uh for Meta. So, that’s a business that, you know, I don’t think it’s getting credit for the fact that it’s it’s it’s the singular successful application of AI in the entire planet.