There's an interesting thing happening in mega-cap tech right now: prices are coming down faster than fundamentals.
$NVIDIA(NVDA)$ has compressed from around 32x PE to about 29x.
$Microsoft(MSFT)$ has gone from around 27x PE to about 22x.
$Meta Platforms, Inc.(META)$ has moved from around 22x PE to roughly 20x.
On paper, these names are actually cheaper today than during the April 2025 correction, despite stronger earnings power and AI-driven revenue acceleration since then.
That's the disconnect: multiple contraction while earnings power is still trending up.
This is what re-rating phases tend to look like before sentiment flips back.
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