Still a Buy? AAPL, MSFT, & AMZN Among the "Magnificent Seven"
Last month, America's biggest seven tech giants— $Alphabet(GOOG)$ $Alphabet(GOOGL)$ $Amazon.com(AMZN)$ $Apple(AAPL)$ $Meta Platforms, Inc.(META)$ $Microsoft(MSFT)$ $NVIDIA Corp(NVDA)$ $Tesla Motors(TSLA)$, known as the "Magnificent Seven"—saw their combined market value soar past $15 trillion for the first time ever, nearly half of the entire US GDP.
Over the past year, these behemoths surged by over 60%, while the other 493 companies in the S&P 500 only managed a 20% rise. If you're eyeing investments in these tech titans right now, these three stocks are worth considering.
1. $Apple(AAPL)$
Apple continues to dominate the tech scene with its diverse lineup including iPhone, iPad, Mac, and services. Wall Street analysts believe Apple Intelligence will cement its leadership in consumer AI experiences. Integrating AI seamlessly into Apple's proprietary hardware and software ecosystem is expected to enhance synergy across its products.
In addition, Apple is considering a new pricing strategy for the iPhone that could raise the price of high-end models to subsidize lower-priced iPhones and thus attract new users to the Apple ecosystem.
Despite challenges like intensified competition in the Chinese market, analysts remain bullish on Apple's prospects. Several have reiterated buy ratings, predicting a potential 25% upside from current levels. Apple remains one of the top picks among the "Magnificent Seven."
2. $Microsoft(MSFT)$
Microsoft's robust growth is underpinned by its diversified portfolio—Azure cloud services, Office suite, and gaming division. Its strong influence in both enterprise and consumer markets provides stability and growth potential.
Bullish factors for Microsoft include its recent second-quarter earnings, showing significant growth in innovative approaches and AI-related revenues, particularly in Azure.
Analyst Pierre Ferragu from New Street Research has set a target price of $570, implying a market cap nearing $4 trillion. Under CEO Satya Nadella's leadership, Microsoft's strong execution further fuels optimism.
3. $Amazon.com(AMZN)$
Amazon maintains its lead in e-commerce and cloud computing through AWS. Expansion in streaming, logistics, and AI positions it well for long-term growth.
Reasons to be bullish on Amazon include its solid e-commerce foundation, substantial cost savings in North America and international sectors, and strategic layoffs. AWS is expected to drive future growth, benefiting from the rise in AI-related demand.
Looking ahead, Amazon's custom AI training chips, Inferentia and Trainium, aim to offer competitive training speeds at lower costs, attracting more AWS users.
Analysts believe AWS is approaching an "inflection point" for AI, with generative AI projects expected to drive revenue growth beyond current forecasts. That should ensure Amazon's stock continues to grow over the next five years.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Amazon fly higher