The Magnificent Seven tech stocks and the AI themes stole the show during recent market rallies. Do other sectors offer just as many promising opportunities to investors as the tech landscape, which some experts consider to be entering "bubble" territory? Kestra Investment Management CIO Kara Murphy joins Yahoo Finance Live to discuss looking past the major large cap stock narratives and finding value in small cap markets. "Valuation is a terrible timing tool. It's a pretty good predictor of what returns will be over the medium to long term. But, that does not suggest that small caps will start to outperform relative to large caps," Murphy says. "We're not building for a market for tomorrow, we're looking to expose ourselves to opportunities to help us get to those goals. So what that means is this is probably not the time to be leaning into these rich areas of the market. It's a time to examine your portfolio, make sure you have exposure to some of these other areas." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Luke Carberry Mogan.
While equity markets (^GSPC, ^DJI, ^IXIC) are mixed as investors remain wary before new inflation data, the AI rally has continued for most of the companies involved, most notably Nvidia (NVDA). Commerce Street Capital President Dory Wiley joins Yahoo Finance to discuss the popularity of Nvidia and the market's attempts to balance the AI rally with the expectation of rate cuts. He also explains what investors need to keep in mind when trading these stocks. Wiley expands on his thoughts about Nvidia in this market: "I think you under-allocate Mag Seven...at your own risk. I think you gotta stay allocated and I think you have to tilt to some of your favorites like Nvidia, and that's been working. It's because there's fundamental reasons to do so. Microsoft, Nvidia, massive margins, massive market entrenchment and great return on equity, estimated earnings, estimated revenues continue expanding. You saw for Nvidia what they did -- their net income is what? Up almost 586%? What kind of company gets you that? A company like that warrants a euphoria." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino
Micron Technology (MU) announced a partnership with Samsung (005930.KS) to use Micron's memory cards in the Galaxy S24 smartphone line, enabling enhanced AI capabilities on devices. Zoom Video (ZM) stock rose after the company reported better-than-expected fourth-quarter results. Zoom also announced a $1.5 billion share buyback program, pointing to optimism about future growth prospects. AutoZone (AZO) shares gained ground following strong second-quarter results driven by DIY auto parts sales. Earnings exceeded expectations as consumers spent more on maintaining and repairing older vehicles themselves amid inflationary pressures. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith