值得注意的是，在BATMMAAN中，As Broadcom joined the trillion-dollar market capitalization club, the largest technology stocks expanded to 8. The English name is “BATMMAAN” for short. Nvidia's expected price-earnings ratio for 2025 is 31 times, and the expected profit growth rate is 52%, so its PEG ratio reached 0.6, which is the only one below 1 in BATMMAAN, which means the company has the lowest valuation.
Over the past year, US tech stocks have once again become the focus of global investors' attention.
As the market capitalization broke through the $1 trillion mark, Broadcom officially joined the ranks of tech giants, and the club of large technology stocks expanded to 8: Apple, Tesla, Microsoft, Meta, Alphabet, Amazon, Nvidia, and Broadcom — the English name combination for these 8 stocks is “BATMMAAN.”
Notably, Nvidia, which has the highest return in BATMMAAN, is probably currently the lowest valued.
According to the data, Nvidia recorded a 171% increase in 2024, the largest of the eight BATMMAAN stocks. Meanwhile, based on the 2024 closing price, Nvidia's expected price-earnings ratio is 31 times, while analysts generally expect Nvidia's profit to grow 52% in 2025, so Nvidia's PEG ratio will reach 0.6.
The PEG indicator was invented by investment guru Jim Slater in the 1960s. It indicates that the company's expected price-earnings ratio is divided by the expected profit growth rate. If PEG is greater than 1, then the value of this stock may be overvalued, and vice versa, undervalued.
In BATMMAAN, only Nvidia's PEG ratio is below 1. This means that Nvidia's valuation is still reasonable and “the cheapest” among the big tech stocks. Broadcom ranked the second lowest with a level of 2.3.
In comparison, although Tesla's profit growth rate is expected to reach 37% next year, the expected price-earnings ratio is 121 times, boosting PEG to 3.2, making it the highest in BATMMAAN.
Furthermore, Microsoft recorded a cumulative increase of only 12% in 2024, making it the only BATMMAAN to lose the market. At the same time, PEG also reached 2.3, which means it is overvalued. The other two companies with low profit growth rates are Alphabet and Meta, which have PEG ratios of 1.8 and 1.9, respectively, and Apple and Amazon's PEG of 1.8 and 1.4, respectively.
It's important to note that high valuations don't necessarily mean poor performance in the short term. Looking back at history, as 1998 entered 1999, the S&P 500 index rose 21% in 1999 despite many analysts warning that the stock market was overvalued.
