J.P. Morgan Equity Strategists argue that the valuation de-rating across the "Magnificent Seven" tech giants has largely run its course as their relative forward P/E multiple touches a 10-year low! KEY HIGHLIGHTS: • Relative forward P/E for the Mag-7 group plunged to a 10-year low, sitting roughly 1 standard deviation below its historical median • Multiple compression was driven by shifting economics, as massive capex (e.g., Microsoft $MSFT allocating $115.9B or 34.9% of sales) increases leverage and weighs on free cash flow • Quant ratings continue to show sharp divergence, with Nvidia $NVDA maintaining an A+ Growth grade and Strong Buy rating, while Microsoft $MSFT holds at a Hold due to an F Valuation score THE RATING: Robust hyper-growth and capital return sustain Nvidia $NVDA at a Seeking Alpha Quant STRONG BUY, while $115.9B in capex spending and weak valuation metrics keep Microsoft $MSFT at a HOLD. Do you agree with J.P. Morgan that the Magnificent Seven valuation reset is largely complete, or do $MSFT's $115.9B capex commitments signal further multiple compression ahead? Drop your take below! ▻