Capital Group Says ‘Gentle Bubble’ Is Forming in US Tech Stocks
- Firm cuts stakes in few outperformers, raises holding in chips
- Underweight on Magnificent Seven for at least a year: Budden
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Capital Group Cos. is shuffling stakes in US technology names amid the blowout rally in the Magnificent Seven megacaps.
The $2.5 trillion manager trimmed holdings in stocks whose outperformance had markings of a “gentle bubble,” and raised stakes in some large semiconductor companies beyond the chip-making darling Nvidia Corp., Andy Budden, investment director for equities said at a briefing in Singapore.