Tesla booted from the ‘Magnificent Seven’ by a top fund manager. Here is the tech giant he’s crowned.

A MarketWatch interview with investor David Giroux argues that the major mega-cap tech leaders are not in a bubble, but he excludes Tesla from his version of the “Magnificent Seven” and replaces it with Broadcom. He says Tesla looks overvalued, while Nvidia, Microsoft, Apple, Alphabet, Amazon and Meta still have valuation support from strong earnings growth. Giroux is more cautious on Micron, Western Digital, Marvell and Caterpillar, saying their recent valuation spikes look excessive. He also highlights healthcare “picks and shovels” names like Danaher and Becton Dickinson as relatively cheap defensive plays, and sees utilities as attractive AI beneficiaries because data-center power demand is lifting earnings growth. Overall, the article frames a sector rotation preference away from stretched AI-adjacent hardware names and toward healthcare and utility stocks.