Investor concerns about overvaluation and excessive cash burn in the magnificent seven are causing capital to rotate away from US tech stocks toward overlooked sectors

"The AI bubble is not just engulfing Wall Street and the 'Magnificent Seven' stocks, the bank said. 'The extremely optimistic valuations raise questions: do today's stock market prices reflect a rational bet on the transformative technology? Or are we seeing a remake of the dot-com bubble?' the ECB said."

"As fears about over-valuation and huge cash burn continue to play on investors' minds, the group has seen its performance lag behind other much less exciting sectors."