Wall Street Recommends Magnificent 7 Tech Stocks as Valuations Hit Attractive Levels on July 6

According to Business Insider, on July 6, major Wall Street investment banks including Morgan Stanley and Goldman Sachs recommended clients consider Magnificent 7 tech stocks trading at attractive valuations. The Roundhill Magnificent 7 ETF (MAGS), which holds equal-weight positions in the group, has remained essentially flat year-to-date, while the S&P 500 has gained double-digit percentage and semiconductor stocks have surged significantly.

Morgan Stanley's Mike Wilson, chief U.S. equity strategist, noted that the extreme performance gap between semiconductor and hyperscaler stocks is unsustainable. Goldman Sachs assessed that hyperscaler valuations have declined to compelling levels, with current price-to-earnings ratios comparable to March 2020 and October 2022 market lows. The firms are actively recommending clients increase hyperscaler exposure.