1. Magnificent 7, including NVDA, appear less robust. US growth stocks face high valuations. 2. US large growth stocks forecast 1.8% annual returns. NVDA may be impacted. 3. Global divergence in valuations shakes market norms. NVDA faces reconsideration. 4. Non-US value stocks show attractive earnings multiples. NVDA remains expensive comparatively.
NVDA, as part of the high-valuation Magnificent 7, is exposed to lower expected returns. Historical episodes like the dot-com bubble show how overvaluation can lead to subdued performance over time.
While the article primarily discusses macro trends, NVDA is directly mentioned as a key US growth stock. Its inclusion in the Magnificent 7 amplifies the relevance despite the analysis being broad.
The outlook is based on decadal return forecasts and shifts in global valuation trends. This long-term perspective implies gradual behavioral changes in growth stock performance.