Legal & General Investment Management CIO Sonja Laud has suggested the Magnificent Seven could be reaching bubble territory, as she advised adopting a thematic approach to AI rather than betting on individual names.
Excitement around generative AI marked a major catalyst for AI-linked stocks in 2023, and Big Tech firms have continued to deliver in the most recent earnings season, with Nvidia's bumper results last month a particular standout. However, some industry players have warned that after massive outperformance last year, these names appear vulnerable to pullbacks if future quarter earnings fall short of elevated expectations around adoption speed and profitability. "If you look at the US, it is trading 21x forward price-to-earnings, and there has been a lot of talk emerging about whether ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
