To The Moon

Last week, leading AI technology stocks, including semiconductor giants like NVIDIA Corp. (NVDA), experienced a sharp decline. Concerns have arisen that the substantial AI investments by major tech companies might not deliver returns as soon as anticipated.

The profitability of these investments remains uncertain, and the high valuations of AI stocks are troubling many investors. Is this apprehension justified? Should you consider buying the dip in the "Magnificent Seven"—Apple, Alphabet, Amazon, Meta, Microsoft, Tesla, and NVIDIA—and their associated ETFs? Was the recent sell-off a healthy market correction?

Microsoft

• Earnings ESP: +1.08%

• Zacks Rank: #3

• Performance: Gained 4.6% in the past three months

• Highlights: Collaboration with OpenAI, rapid deployment of generative AI, strong cloud business growth

Meta Platforms

• Earnings ESP: -1.45%

• Zacks Rank: #3

• Performance: Gained about 3% in the past three months

• Highlights: Investment in AI, increasing AI-generated content on Facebook and Instagram, high user engagement and advertiser interest

Apple

• Earnings ESP: +3.05%

• Zacks Rank: #2

• Performance: Gained 3.5% in the past three months

• Highlights: Launch of AI feature Apple Intelligence, potential for a new upgrade cycle, concerns over declining sales in China

Amazon

• Earnings ESP: +4.58%

• Zacks Rank: #2

• Performance: Down about 2% in the past three months

• Highlights: Dominance in e-commerce, booming advertising unit, accelerating cloud business growth driven by AI capabilities

ETFs to Consider

Roundhill Magnificent Seven ETF (MAGS)

• Details: Equal-weight exposure to the "Magnificent 7"

• AUM: $676.5 million

• Fees: 29 bps annually

• Volume: 120,000 shares daily

MicroSectors FANG+ ETN (FNGS)

• Details: Equal-weighted exposure to next-generation tech and growth stocks

• AUM: $353.6 million

• Fees: 58 bps annually

• Volume: 120,000 shares daily

Vanguard Mega Cap Growth ETF (MGK)

• Details: Tracks CRSP US Mega Cap Growth Index

• AUM: $21.1 billion

• Fees: 7 bps annually

• Volume: 299,000 shares daily

• Exposure: "Magnificent 7" collectively 35.8% of assets

Invesco S&P 500 Top 50 ETF (XLG)

• Details: Tracks S&P 500 Top 50 Index

• AUM: $5 billion

• Fees: 20 bps annually

• Volume: 2 million shares daily

• Exposure: "Magnificent 7" collectively 33.4% of assets

iShares S&P 100 ETF (OEF)

• Details: Exposure to 101 largest U.S. companies

• AUM: $12.8 billion

• Fees: 20 bps annually

• Volume: 185,000 shares daily

• Exposure: "Magnificent 7" collectively 28.3% of assets

$(TSLA)$ $(GOOG)$ $(GOOGL)$ $(AMZN)$ $(META)$ $(MAGS)$ $(FNGS)$ $(MGK)$ $(XLG)$ $(OEF)$