Key Points
(Bloomberg) -- Capital Group Cos. is shuffling stakes in US technology names amid the blowout rally in the Magnificent Seven megacaps.ge..
The $2.5 trillion manager trimmed holdings in stocks whose outperformance had markings of a gentle bubble, and raised stakes in some large semiconductor companies beyond the chip-making darling Nvidia Corp., Andy Budden, investment director for equities said at a briefing in Singapore..
The rejigging underscores how investors are increasingly questioning whether the cohort comprised of Apple Inc., Microsoft Corp., Nvidia, Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Tesla Inc. can repeat last years performance, when an index of the seven stocks more than doubled versus the S&P 500s 24% gain..
Bank of America Corp. strategists, including Michael Hartnett, argued in mid-February that a number of similarities between tech stocks now and previous bubbles suggest the Magnificent Seven is approaching but not yet at levels that may lead it to pop..
Capital Group has been selling its stake in Tesla for five straight quarters, while raising holdings in Microsoft, Meta and Taiwan Semiconductor Manufacturing Co. which has a listing in the US over two quarters through December, according to data compiled by Bloomberg. ..
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04, Jan, 24The so-called Magnificent Seven, which includes Apple Inc., Amazon.com Inc., Alphabet Inc., Microsoft Corp., Meta Platforms Inc., Tesla Inc. and Nvidia Corp., slipped for the last four trading days, the longest losing streak in a month, according to the Bloomberg Magnificent 7 Price Return Index. Shares of Apple, down 4.6% in the time period, lead the slump thats erased $383 billion in market value. The Nasdaq 100 Index has also fallen in the last four trading days.