Demodaran: Corrections in 7 "Mega Stocks" May Present Buying Opportunities

According to Aswath Damodaran, a professor at New York University known for his expertise in valuations, the "Fantastic Seven" stocks can be purchased during corrections as they are likely to continue generating profits. In an interview with Bloomberg TV, Damodaran stated, "As a value investor, I haven't seen cash machines as profitable as these companies. I don't see the slowdown in these stocks, which are among the largest in the world, reigning over the technology and artificial intelligence boom and responsible for a significant portion of the gains in the U.S. stock index for years, such as Tesla Inc., Meta Platforms Inc., Microsoft Corp., Alphabet Inc., Amazon.com Inc., Apple Inc., and Nvidia Corp."

He added, "There will be corrections, and when that happens, I recommend finding a way to add at least one, maybe two or three, of these companies, as they are a significant part of what drives the economy and the market." Damodaran mentioned that the seven mega companies, including chip giant Nvidia, are "incredibly profitable," and he has invested in all of them.