In 2024, the once strong “Magnificent Seven” group of technology stocks has shown signs of splintering, with Tesla and Apple trading in the red. Despite this, two members of the group continue to outperform the market.
The “Magnificent Seven” consists of the world’s largest technology stocks, which gained fame last year for delivering an impressive average gain of 112%, far surpassing the S&P 500 index. The seven stocks include Microsoft, Amazon, Nvidia, Meta Platforms, Apple, Alphabet, and Tesla.
However, in 2024, some members of the group are struggling, with Tesla’s stock dropping by 33% and Apple down by 12%. On the other hand, the S&P 500 is up by 9% and trading near its all-time high.
Despite the challenges faced by some members, others like Microsoft and Amazon continue to excel. DailyBubble believes that Microsoft’s strategic investments in artificial intelligence, particularly with its acquisition of OpenAI, position it as a potential long-term leader in consumer-facing AI. The integration of AI models into its product portfolio, such as Copilot, presents significant growth opportunities for Microsoft, especially in the consumer market.
Amazon, on the other hand, dominates the three core layers of enterprise artificial intelligence, including hardware, large language models, and applications through its AWS platform. With a focus on innovation and a strong position in e-commerce and cloud computing, Amazon remains a key player in the tech industry.
While Microsoft’s stock has seen a 12.7% increase in 2024 and Amazon’s stock is up by 20%, both companies are trading near their all-time highs. DailyBubble sees potential in investing in these companies, given their strong market positions and growth prospects.
As the technology sector continues to evolve, DailyBubble recommends keeping an eye on Microsoft and Amazon for potential investment opportunities in the future.