In 2023, the Magnificent 7 stocks had a significant impact on the S&P 500, with one tripling in value and another doubling. Their collective return of 106% outshined the rest of the stocks in the index, earning them the nickname ‘Magnificent 7’. As we look ahead to 2024, the question on everyone’s mind is: how much higher can these stocks go?
Artificial intelligence (AI) is expected to play a crucial role in determining the future growth of these stocks. Companies like Alphabet (GOOG, GOOGL) have been making strides in AI, with Alphabet releasing its chatbot, Bard (now renamed Gemini), and updating its Large Language Model (LLM) to stay competitive. Analysts believe that Alphabet could see a 20% increase in 2024 if it can enhance its AI capabilities.
Apple (AAPL) is also expected to see a 50% return in 2024, with the upcoming iOS 18 update rumored to include AI enhancements that could boost demand for new iPhone models. Despite facing some challenges, such as negative revisions and a decrease in share price, Apple remains a promising investment for the year.
Amazon (AMZN) is investing heavily in AI, with a recent $2.75 billion investment in the AI startup Anthropic. Amazon’s focus on AI and data centers is expected to drive growth in 2024, with analysts predicting a rise from $180 to $230 per share.
Meta Platforms (META) recently became a dividend stock, leading to a spike in market capitalization. While analysts suggest that shares could exceed $600 this year, the company’s reliance on ad revenues and AI investments will be key factors in its success.
Microsoft (MSFT) is aiming to overcome safety concerns related to its AI outputs, with recent tools designed to prevent misuse. Strong fundamentals, including impressive growth and cloud revenues, position Microsoft well for potential growth in 2024.
Nvidia (NVDA) is projected to rise to $1,400 in 2024, driven by strong revenue growth and the launch of its H200 chips. As long as AI adoption continues to expand, Nvidia is poised for continued success.
On the other hand, Tesla (TSLA) is facing challenges in the Chinese EV market, with weak demand leading to pricing discounts and margin concerns. Analysts believe that Tesla’s best case scenario hinges on a rebound in the Chinese economy.
Overall, the Magnificent 7 stocks have shown incredible potential, with AI advancements expected to drive growth in 2024. DailyBubble believes that these stocks present unique opportunities for investors looking to capitalize on the intersection of technology and finance.