While the “Magnificent Seven” continue to dominate headlines, a shift is quietly unfolding in the value investing space. So far in 2026, the iShares MSCI USA Value Factor ETF (VLUE) has delivered a blistering 7.2% return in just three weeks, substantially outpacing the essentially flat broader market.Surprisingly, the primary drivers of this rally aren’t traditional industrial or consumer staples companies, but a cluster of technology stocks long categorized as value plays.
Micron Technology (MU) is a prime example of this shift. The memory chipmaker’s shares have surged more than 35% this year, as the market warms to the potential of its high-bandwidth memory for powering AI processors. According to FactSet, it still trades at a price-to-earnings ratio below 11, even as analysts project earnings growth of 36% in 2026 and 43% in 2027. Its inclusion in value indexes highlights a new reality: in the AI era, some tech companies with strong growth profiles are still being priced as value stocks due to perceived cyclicality or lagging market recognition.
A similar story is playing out at Intel and Western Digital—up 47% and 40% year-to-date, respectively. Both remain heavily weighted in value funds thanks to their relatively modest valuations. This trend underscores a broader market evolution: the lines between growth and value are blurring, driven by transformative technologies.
For investors seeking classic value opportunities, agricultural commodities giant Bunge Global offers a case in point. Its shares leapt 25% in the past two weeks yet still trade at less than 13 times forward earnings. Although Wall Street expects a nearly 20% profit decline for full-year 2025—citing trade and biofuels policy uncertainty—earnings are forecast to rebound in 2026. With a dividend payout ratio of just 30%, its 2.5% yield appears well-supported.
Other standout performers include Builders FirstSource, Teledyne Technologies, CNH Industrial, and Newmont Corp, each up around 20% since the start of the year—demonstrating the breadth of the value stock recovery.
Newmont’s rally is particularly noteworthy. As one of the world’s largest gold miners, it has ridden the metal’s 75% price surge over the past 12 months. Gold miners act as leveraged bets on bullion prices: high fixed costs can squeeze margins when prices are low, but profitability balloons during rallies like the current one.
Gold hit a record high of $4,908.80 an ounce this Thursday, fueled partly by political uncertainty as President Donald Trump returns to the White House, prompting investors to seek safe-haven assets. However, buying mining stocks at these lofty levels introduces volatility risks far exceeding those of holding physical gold.
This rally suggests the definition of value investing is expanding. The old “low valuation, low growth” framework is gradually integrating tech names with high-growth potential and cyclical assets buoyed by macro trends. For bargain hunters, the market now offers a more complex and diverse menu—the key lies in identifying those “non-mainstream” players still overlooked by the dominant market narrative.
