LGIM CIO Laud: Magnificent Seven could be reaching bubble territory

Favours thematic approach to AI

Valeria Martinez
clock • 2 min read

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 ...

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