No one will ever confuse Medallion for one of the so-called Magnificent Seven tech companies. But after months of trading in response to the latest economic and geopolitical headlines, the mosaic of stocks that comprise the market are beginning to flash their differences. And individual investors are taking note, eschewing megacap tech stocks for undervalued, and overlooked, potential gems. Yes, investors and analysts say, it is fun—and possibly rewarding—to pick stocks again.

Sky-high valuations on the market’s tech heavyweights have left investors in search of less-expensive alternatives. What’s more, the Trump administration’s trade policies haven’t affected all companies the same way, creating winners (and losers) for research-driven investors to discover.

Stocks in the benchmark S&P 500 index are moving less in lockstep now than at any point since February, when the market was still rallying on the results of the 2024 presidential election.

Nvidia, Microsoft and Broadcom, whose shares are looking expensive relative to their earnings. Valuations are high in the broader sense, too.

Traders are watching for other signs of market froth as well, including speculation in meme stocks and a cryptocurrency frenzy that has driven the price of bitcoin to records.

Some analysts warn that the recent wave of optimism stands at odds with a number of unresolved risks on the horizon in the latter half of 2025: The specifics of tariff policy aren’t yet finalized, and the Trump administration’s self-imposed Aug. 1 deadline for striking deals looms. There are also early signs that U.S. policies are lifting the inflation rate, which could prevent the Federal Reserve from making much-anticipated interest-rate cuts later this year.