(Bloomberg) — Capital Group Cos. is shuffling stakes in US technology names amid the blowout rally in the Magnificent Seven megacaps.
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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.
The rejigging underscores how investors are increasingly questioning whether the cohort — comprised of Apple Inc., Microsoft Corp., Nvidia, Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Tesla Inc. — can repeat last year’s performance, when an index of the seven stocks more than doubled versus the S&P 500’s 24% gain.
When “you look at all these other exciting industries where really important things are happening, both in the US and especially outside the US, you can say…
