Julian Emanuel of Evercore ISI remains bullish on megacap technology stocks despite a deepening global selloff in the sector [1, 2].
This outlook comes as investors grapple with volatility in the largest technology firms. Because these companies hold significant weight in major indices, their performance often dictates broader market sentiment and investor confidence in the artificial intelligence trade.
Speaking on Bloomberg Television on June 23, 2026, Emanuel said that earnings will rescue the sector from the current downturn [1, 3]. He noted that some of the biggest names in the sector have seen losses of more than 10% in recent weeks [1].
Emanuel believes the current price corrections have served a purpose by aligning stock values with their actual financial performance. He said that earnings and price have simply caught up to each other in some of the Mag 7 stocks [2].
According to Emanuel, these megacap technology stocks will return to investor favor following the recent selloff [1]. He suggests that the alignment of fundamentals and pricing creates a more sustainable foundation for a rebound.
Beyond the tech sector, Emanuel provided projections for the broader U.S. market. He has established a base-case target of 7,750 for the S&P 500 by the end of 2026 [2].
Emanuel also outlined a more optimistic path for the index. He said there is a 30% probability of a bullish scenario in which the S&P 500 climbs to 9,000 [2].
“Earnings and price have simply caught up to each other in some of the Mag 7 stocks.”
The perspective from Evercore ISI suggests that the recent tech selloff is a valuation correction rather than a fundamental collapse. By arguing that prices have 'caught up' to earnings, Emanuel implies that the risk of a bubble has decreased, potentially making the sector more attractive for long-term investors as the gap between speculation and actual profit closes.
