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News  ›  The Motley Fool

Ed Yardeni Steps Back From the "Magnificent Seven" and Bets on the Impressive 493 Instead

The Motley Fool Logo The Motley Fool By Bram Berkowitz
Ed Yardeni Steps Back From the

Investment strategist Ed Yardeni is shifting from a bullish stance on the Magnificent Seven tech stocks to a more neutral position, instead favoring the remaining 493 S&P 500 companies. He believes all companies are becoming technology companies and recommends focusing on industrials, financials, and healthcare sectors, which offer better valuations and risk-reward scenarios compared to expensive AI-driven tech stocks.

Insights
IONQ.WS   positive

Invested in Classiq and sees partnership as enabling cutting-edge quantum applications


MAGX   negative

Yardeni is shifting from bullish to neutral on these stocks due to concerns about excessive valuations, concentration risk (35% of S&P 500), and uncertainty about whether AI infrastructure investments will deliver promised returns. Increased competition from smaller tech companies and each other may erode margins.