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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.