The president of sell-side Wall Street firm Yardeni Research is now underweight on the Magnificent 7 stocks.

Ed Yardeni says in a new interview on CNBC that he thinks those top stocks are “somewhat overvalued.”

“We’ve got to the point where information technology and communication services in the S&P 500 now account for 45% of the S&P 500. It’s a very concentrated market capitalization. And I think if the Magnificent 7 are going to continue to succeed, then they’re going to have to find sales among the S&P 493, I call them the ‘Impressive 493,’ in order to be used for increasing productivity.” 

The shift is Yardeni’s first move away from being overweight on the sector in 15 years. The Wall Street veteran says the Mag 7 is now in a “Game of Thrones”-style environment, with different tech giants competing with one another.

“They used to just kind of operate in their own moats and leave each other alone, and I think we’re now having a competitive situation, and not only that, but I think we’re going to find other start-ups to come and challenge some of their technologies.”

Yardeni recommends investing in financials, industrials, the healthcare industry and overseas stocks instead of the Mag 7.