AI Stocks: Fed's Mary Daly Warns of 2027 Productivity Test

AI Summary

Mary Daly, president of the San Francisco Fed, stated that while businesses are investing in AI, the anticipated productivity gains have not yet materialized, indicating that 2027 will be a critical year. According to Seeking Alpha, Micron Technology (MU) is currently trading at over 45 times non-GAAP earnings, significantly above its 5-year average, and has seen a 780% increase in value over nine months. Nvidia (NVDA) trades at over 37 times earnings, making the market cautious about future disappointments. The Magnificent 7, comprising major companies like Apple (AAPL) and Microsoft (MSFT), now represents 34.8% of the S&P 500's market share.