Selling could be making way for mega-IPOs like SpaceX, says Empower's Marta Norton

Watch on YouTube ↗  |  June 09, 2026 at 21:09  |  4:58  |  CNBC
Speakers
Marta Norton — Chief Investment Strategist, Empower

Summary

Marta Norton discusses the recent market pullback after the AI-driven rally, noting that memory semiconductors look toppy and due for a correction while value opportunities exist in underparticipating sectors. She sees bargains in healthcare, financials, AI software, the Magnificent Seven excluding Tesla and Apple, and especially NVIDIA, which has compressed on valuation despite strong earnings. She also highlights that upcoming mega-IPOs like SpaceX could create volatility in the AI trade.

  • Market sell-off may be repositioning ahead of mega-IPOs like SpaceX.
  • Memory/semiconductor area appears overextended and faces a near-term correction.
  • Healthcare offers value and defensiveness after lagging the rally.
  • Financials are not stretched on valuation and present a value opportunity.
  • AI software has been beaten down this year and contains value opportunities.
  • Within the Mag-7, excluding Tesla and Apple leaves cheaper names to own.
  • NVIDIA's pullback is valuation contraction, while earnings still drive returns.
  • AI capital expenditure is secular and may be resilient to rate hikes.
  • Upcoming AI IPOs could increase volatility for the broader market and AI trade.
Ideas
Marta Norton Chief Investment Strategist, Empower 0:40
Memory semiconductors face near-term correction.
The memory semiconductor area has been the real force lifting the market but has run so hard it feels very toppy and stretched sentiment suggests a correction is underway, even though fundamentals may not be deteriorating.
SMH MED
Marta Norton Chief Investment Strategist, Empower 1:21
Healthcare offers value and defensiveness.
Healthcare has not participated as much in the rally, is not as stretched from a valuation standpoint, and offers added defensiveness in a market like this, making it an attractive area.
XLV MED
Marta Norton Chief Investment Strategist, Empower 1:21
Financials are underowned and cheap.
Financials have not participated as much as the broader market and are not as stretched from a valuation standpoint, presenting a value opportunity.
XLF MED
Marta Norton Chief Investment Strategist, Empower 1:43
Mag-5 ex-Tesla/Apple is cheaper.
Among the Magnificent Seven, Tesla and Apple should be excluded, and the remaining five names are arguably cheaper, offering value within the AI trade.
Magnificent Seven excluding Tesla and Apple HIGH
Marta Norton Chief Investment Strategist, Empower 1:49
AI software is a cheap opportunity.
Software has taken it on the chin this year, leaving value opportunities within the AI theme that are currently being ignored.
AI software MED
Marta Norton Chief Investment Strategist, Empower 2:22
NVIDIA is undervalued on earnings.
NVIDIA has been forgotten among the broader semiconductor story, but its returns have been entirely driven by earnings while its valuation has contracted, creating ignored value.
NVDA HIGH
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This CNBC video, published June 09, 2026, features Marta Norton discussing SMH, XLV, XLF, Magnificent Seven excluding Tesla and Apple, AI software, NVDA. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Marta Norton  · Tickers: SMH, XLV, XLF, Magnificent Seven excluding Tesla and Apple, AI software, NVDA