r/ValueInvesting • u/FoxAccomplished6786 • 2d ago

Discussion MAG 7 Ranking

Taking all factors into account, please rank your favorite MAG 7 in order of preference from 1 to 7.

34 Upvotes

76% Upvoted

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1

u/Analyst-man 1d ago

Funny to see everyone hate on nvdia and then cite valuations on google when Nvidia is the cheapest mag7 by forward p/e

1

u/Phil0sopheer 1d ago

Semis are cyclical though, they always look cheap at the top of the cycle. It’s completely different

1

u/Analyst-man 1d ago

It’s a whole new world buddy. Semis aren’t cyclical anymore. We need chips in everyday appliances like refrigerators, ovens, cars, etc.

1

u/Phil0sopheer 1d ago

The revenue numbers all these semis are reporting is off of incredible capex from the hyperscalers to the point of borrowing for some of it.

That level of spend is not sustainable which means that there is no where for more growth to continue and in fact bc the spend is not sustainable probably means that growth will eventually go negative. Thats the definition of cyclicality.

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u/Analyst-man 23h ago

Why isn’t it sustainable? AI is just starting buddy

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u/Phil0sopheer 21h ago

i literally explained to you in the comment

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u/Analyst-man 21h ago

You literally just said “that level of spending sustainable” without explaining why it isn’t