Many investors may be tempted to chase after high-profile stocks like Tesla and Nvidia in hopes of continued momentum, but these companies also pose significant risks.
While Tesla and Nvidia have shown potential for remarkable growth, they carry higher valuation multiples that must be justified by their future performance and market conditions.
Diversification within the Magnificent Seven might be a wiser choice, especially if the market faces a corrective phase, as higher-valued stocks could experience greater downside.
Investors should carefully weigh their options, considering both the growth prospects and inherent risks associated with investing heavily in top-tier tech stocks such as TSLA and NVDA.
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