‘Magnificent Seven’ review: Nvidia soars 183% year-to-date to lead U.S. tech companies in 2024. Meta is in second place. complete list

“Magnificent Seven” review: US “Magnificent Seven” stocks (Apple, Microsoft, Alphabet, Amazon, NVIDIA, Metaplatform, Tesla) prove their worth with significant gains and are expected to grow in the market in 2023 dominated the trends. The Magnificent Seven are a group of seven high-performing individuals who have once again impressed investors and cemented their significant influence in the US market. Influential stocks in the technology sector.

According to Vested Finance, an SEC-registered brokerage and investment advisory firm, the popular “Magnificent Seven” are due to their huge market capitalizations, which give these U.S. stocks significant influence over the Nasdaq Composite Index and the S&P 500 Index. This is said to be a key driver of broader market trends.

Also read: Tech giants Nvidia and Tesla emerge as top US-listed stocks chosen by Indians in 2024. ETFs gain momentum

What is the “Magnificent Seven” stock?

The seven American tech giants that make up the elite Magnificent 7 are companies at the forefront of fields such as artificial intelligence (AI), electric vehicles, cloud computing, and digital services. Although they still have significant growth potential, experts say investing in them remains risky as these factors are already priced in.

As of 2024, Nvidia leads the Mag Seven Group with a market capitalization of $3.36 trillion, driven by the AI ​​demand boom in the technology sector. Analysts believe that normal risks such as market volatility, regulatory changes, technological disruption and global economic conditions may impact performance.

The term “Magnificent Seven” has become popular, particularly in the United States, to refer to a group of powerful companies in the technology sector. The group is comprised of seven of America’s top technology leaders: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. These span four sectors: technology services, electronic technology, retail trade, and consumer durables.

Its businesses include Internet software/services, communications equipment, Internet retail, packaged software, semiconductors, and automotive. Over the past five years, Nvidia led the pack with an impressive gain of nearly 3,000%, followed closely by Tesla with a gain of 1,200%.

Also read: Magnificent Seven boosts tech-heavy Nasdaq: Nvidia up 2%, Meta up 1%, Tesla up 3% ahead of earnings week

“Magnificent Seven” Review 2024: Top Winners

In 2024, investor-favorite AI chip manufacturing giant Nvidia has rocketed to the top of an epic pack of seven, with its stock price soaring 183% year-to-date (year-to-date). Nvidia was followed by Meta, which ranked second among the U.S. tech giants this year. Here, we will take a closer look at each of the seven stocks in the US tech giant group.

1. NVIDIA: +183.2% (year-to-date)

Nvidia was a standout in 2024, posting a massive 183.2% year-to-date growth. The company continues to be a leader in AI and GPU technology, benefiting from a surge in demand for AI-powered applications and a dominant position in the AI ​​chip market. Nvidia’s third-quarter profit beat Wall Street expectations, with significant year-over-year increases in profits and revenue.

However, the stock price recently fell 3% amid reports of an investigation into antitrust violations in China. Despite these setbacks, Nvidia’s growth prospects in the AI ​​space remain strong and it will continue to be a major driver in the technology and semiconductor sectors.

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2. Meta Platform: +73.4% YTD

Meta (formerly Facebook) stock has increased an astonishing 73.4% since the beginning of the year. The company is focusing on Metaverse and virtual reality (VR) platforms, and its growing presence in the AI ​​space is boosting investor sentiment. Meta’s move towards AI-powered advertising and investments in augmented reality and virtual reality technology have contributed to its strong performance. The company’s ability to overcome challenges and capitalize on AI-driven growth trends set it apart in 2024.

3.Tesla: +41.4% (year-to-date)

Tesla has had a great year, with its stock up 41.4% year-to-date. The electric vehicle giant surprised investors by reporting a 9% profit increase in the third quarter, reflecting strong demand for its vehicles. Despite some challenges, including a slight decline in revenue, Tesla is focused on expanding its vehicle production capacity and expanding its presence in renewable energy, which are key to its continued growth. While broader market trends will have a significant impact on Tesla’s stock price, the company’s leadership in the EV market ensures that it remains a key component of the Magnificent Seven.

4. Amazon: +40.5% (year-to-date)

Amazon’s performance has been impressive, with its stock up 40.5% since the beginning of the year. The e-commerce and cloud giant’s third-quarter profit beat analysts’ expectations, with adjusted earnings of $1.43 per share and revenue of $158.9 billion. Amazon’s growth is driven by the cloud business of Amazon Web Services (AWS). Still, AI innovation through Amazon Bedrock, a fully managed service that provides the foundational models for leading AI companies, is also driving investor confidence. The company’s ability to regain the 201.20 buy point reflects investors’ optimism about Amazon’s growth trajectory.

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5. Apple: +26.0% (year-to-date)

Apple remains a leader in the tech space, but its stock price has increased 26% since the beginning of the year. Despite posting a strong quarterly profit of $1.64 per share, up 12% year-over-year, the company provided a lower-than-expected sales outlook for the latest December quarter of 2024.

The delayed release of iPhone 16 and the widespread adoption of AI features are seen as short-term headwinds. But Apple’s long-term dominance in the consumer electronics market, combined with the potential of AI, ensures that it remains one of the most influential stocks in the Magnificent Seven. .

6. Alphabet: +22.7% (year-to-date)

Google’s parent company Alphabet is up 22.7% year-to-date. Google’s dominance in digital advertising and search remains a key driver of Alphabet’s growth. At the same time, the company’s investments in AI and machine learning technology are expected to pay off in the coming years. Alphabet continues to innovate in a variety of areas, including cloud computing, AI, and self-driving cars, and its efforts to integrate AI into its search and advertising businesses are showing promising results.

7. Microsoft: +14.7% (year-to-date)

Microsoft has also performed well, but its stock price growth rate since the beginning of the year has been modest at 14.7% compared to its peers. The company beat expectations for first-quarter profits, posting earnings of $3.30 a share on revenue of $65.6 billion, driven by growth in its cloud computing business. However, the outlook for the current quarter was slightly below analysts’ expectations, dampening investor enthusiasm. Microsoft’s strengths in cloud computing and AI, especially through its Azure platform, ensure that it remains a significant player in the technology space.

Also read: Wall Street Today: U.S. stocks extend thin holiday trading, dragged down by Nvidia aiming for 1% weekly gain. S&P is up 25% since the beginning of the year

US stock market in 2024

The US election results largely determined the performance of the US market in the latest quarter. Donald Trump’s victory, combined with Republican control of both houses of Congress, raised expectations that pro-business policies would continue. Expectations of tax cuts and fiscal policy extensions to boost American exceptionalism have fueled investor optimism.

The S&P 500 has gained 27.62% year-to-date. The index rose just under 6% in November, its best month of the year. Similarly, the Russell Midcap Index and the Russell 2000 (Small Cap) Index also posted significant gains over the same period, reflecting broader market strength.

The main beneficiaries of this change were small-cap stocks, particularly those with exposure to the U.S. domestic market. Last month, U.S. small-cap stocks rose 11%, and these companies accounted for 62% of the developed world small-cap universe. As a result, the MSCI World Small Cap Index posted a remarkable 7% gain in November.

Growth stocks slightly outperformed value stocks, gaining 5.3% compared to value stocks’ return of 3.9%. According to Vested Finance, the stock market will become more diversified in 2024, with sectors other than communications services and information technology rising to the top.

While these two sectors dominated in 2023 and early 2024, financial stocks took the lead in 2024, followed closely by communications services, information technology, and utilities. According to the company’s data, these four sectors outperformed the broader S&P 500 index through November, but all remained in positive territory for the year.

Vested Finance provides brokerage services to Indian investors wishing to invest in US listed securities.

Disclaimer: The views and recommendations provided in this analysis are those of the individual analysts or brokerage firms and not of Mint. Market conditions can change rapidly and individual circumstances may differ, so before making any investment decisions, consult a certified professional, consider your personal risk tolerance, and conduct a thorough We strongly encourage investors to do their research.