Over the past year, USA technology stocks have once again become the focus of attention for global investors.

With a market cap surpassing 1 trillion dollars, Broadcom has officially joined the ranks of technology giants, expanding the club of large-cap technology stocks to 8: Apple, Tesla, Microsoft, Meta, Alphabet, Amazon, NVIDIA, and Broadcom—these 8 stocks are collectively referred to as "BATMMAAN."

Notably, among BATMMAAN, NVIDIA, which has the highest ROI, may currently have the lowest valuation.

Data shows that NVIDIA recorded a 171% increase in 2024, the largest among the eight BATMMAAN stocks. Meanwhile, based on the closing price in 2024, NVIDIA's anticipated PE is 31 times, while analysts generally expect NVIDIA's earnings to grow by 52% in 2025, thus giving NVIDIA a PEG ratio of 0.6.

The PEG indicator was invented by investment master Jim Slater in the 1960s, referring to the expected PE of a company divided by the expected earnings growth rate. If PEG is greater than 1, then the stock may be overvalued; conversely, it may be undervalued.

Among BATMMAAN, only NVIDIA has a PEG ratio below 1. This means that NVIDIA's valuation remains reasonable, making it the "cheapest" among large-cap technology stocks. Broadcom ranks second lowest with a level of 2.3.

In comparison, although Tesla's profit growth expectation for next year has reached 37%, the expected PE is as high as 121, pushing the PEG to 3.2, making it the highest among BATMMAAN.

In addition, Microsoft only recorded a cumulative increase of 12% in 2024, the only one to underperform the Large Cap among BATMMAAN, while the PEG also reached 2.3, indicating that it is overvalued. The other two companies with low profit growth rates are Alphabet and Meta, with PEG ratios of 1.8 and 1.9 respectively, while Apple and Amazon have PEGs of 1.8 and 1.4 respectively.

It should be noted that high valuations do not necessarily mean poor performance in the short term. Looking back in history, at the turn of 1998 into 1999, despite many Analysts warning of overvaluation in the stock market, the S&P 500 Index still rose by 21% in 1999.

This article is compiled from Wall Street Journal, edited by Zhitung Finance: mz.