Nasdaq buying window may open as AI stocks cheapen
This digest was compiled by AI from multiple sources — links to the originals are below.
A rotation out of mega-cap tech stocks has created a rare buying opportunity on the Nasdaq, according to Yahoo Finance. Two AI growth stocks among the Magnificent Seven are now trading at their cheapest valuations in months.
The Rotation Opportunity
The so-called Great Rotation — a shift from high-growth tech into value and cyclical sectors — has pushed down prices of several Nasdaq-listed AI stocks. Yahoo Finance identifies two Magnificent Seven members as particularly cheap: Alphabet and Amazon. Both companies have seen their forward P/E ratios contract by 15-20% since the rotation began in April 2026.
The Two Stocks
Alphabet trades at a forward P/E of 22, its lowest since 2023, while Amazon's forward P/E of 28 is near a two-year low. Yahoo Finance notes that both firms continue to invest heavily in AI infrastructure: Alphabet's Google Cloud revenue grew 32% year-over-year in Q1 2026, and Amazon's AWS AI services revenue rose 41%. The analyst consensus remains bullish, with 85% of analysts rating each stock a Buy.
What's Next
The buying window may narrow if the rotation reverses or if Q2 earnings disappoint. It remains unclear whether the current valuations reflect a genuine discount or a value trap amid broader market uncertainty.
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Nasdaq buying window may open as AI stocks cheapen
