J.P. Morgan Sees Attractive Tech Entry Points as Magnificent Seven Valuation Reset Nears Completion

The valuation reset across the 'Magnificent Seven' mega-cap tech stocks may be largely complete after touching a 10-year relative low, J.P. Morgan Equity Strategy said. The group's forward price-to-earnings multiple relative to the broader market has retreated to nearly one standard deviation below its historical median following heavy AI infrastructure capital expenditures. This follows a broader tech pullback that J.P. Morgan noted has cleared crowded positioning. The bank favors semiconductors over software, projecting chip pricing growth into 2027 and tight supply-demand conditions through 2028.