According to Goldman Sachs, at the time of writing it has reached its lowest rating level in seven years. Tech giants, including Nvidia stocks and TSLA, are facing current pressure amid concerns about AI investment, trade policy risks, and even antitrust risks. AAPL and other technical leaders trading on NASDAQ: NVDA continues to experience valuation compression in these early months of 2025.
Magnificent 7 shares face pressure from AI, trade and litigation
Record reported low ratings
Currently, the seven spectacular stocks are trading at the cheapest levels compared to the wider market in around seven years. Goldman Sachs strategist David Costin emphasized that these tech companies currently show a total price-to-earning ratio of around 28 compared to 20 for the rest of the S&P 500.
David Costin said:
“Concerns about AI investment, trade policy risks and government antitrust litigation have reduced the grand 7-share valuation.”
Contrasting fate within MAG7
Nvidia’s stock has a strong upward trajectory, supported by many analysts proposing a purchase, but analysts are proposing Tesla’s more meeting approach. The magnificent 7 stocks were judged differently by Goldman, so there appears to be a significant difference in their performance at this point.
Potential recovery catalysts
Despite current pressure, Goldman Sachs believes that future revenue reports could bring some easing to the epic seven shares struggling with. NASDAQ: NVDA remains at the forefront of the AI hardware market to some extent, with AAPL continuing to try out the complicated trade tensions.
Goldman Sachs pointed out:
“First quarter revenue could provide AI boost to seven people.”
Evaluation compression could probably represent periodic adjustments rather than fundamental changes for these industry leaders. The total P/E ratio shows premium, but is rather narrow from previous levels, and it could be that some analysts are generating views as an epic seven stock purchase opportunity soon.
