Wharton School Professor Jeremy Siegel said it is unclear whether the “magnificent seven” companies will continue to enjoy the running they had, and hopes that other sectors will start to outperform. “We have these two markets. We have Mag Seven, which is sold by Extesla at 30, 35. After that, 493 other shares have been sold to 19. This makes very reasonable to me,” Siegel told CNBC’s “Squawk Box” on Wednesday, referring to the stock valuation based on the stock price. “I often talked about 20 years old as an equilibrium P/E, so it really depends on what happens in that section.” “Will that sector be the next bull market leader?” he I asked. Mag 7 shares, which account for about a third of the S&P 500, have won the majority of the benchmarks over the past two years as investors have accumulated into the artificial intelligence trade. Nvidia alone has increased by 84% over the past 12 months. However, businesses are about to start 2025. This is a cheap open source AI model that has increased the fear of growing competition, especially after Deepseek’s announcement. The Mag Seven Companies are divided into two camps when it comes to performance. The meta platform is far from the winners, increasing 23% this year, marking its last 17-day winning streak. This is the longest component of the NASDAQ-100, dating back to 1985. Meanwhile, Tesla has fallen by nearly 19%. Apple is off at 7% or more. Meta Ytd Mountain Meta Platforms Siegel said he will wait to spend money on tackling the Megacap Tech giant, and prefers small and intermediate stocks with a more attractive rating. “I’ll be cautious about Mags7,” Siegel said. “I like other groups. I’m 19 years old, I like them, I know we’ve been talking about (it) for a long time, and certainly they’re late. Move to small caps and 15, 14, 13. You don’t need to grow too much to make it profit properly. “As long as Mag Seven continues at 15, 18, they will be leaders.” Siegel continued. “The problem is, we can look at this competition now and reduce margins. Will they become leaders in the next 12 months? Wait and look at the data.”
“We have these two markets.”
