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How to Cash in on The 'Magnificent 7' Tech Stocks
lashayillingwo edited this page 2025-02-11 05:37:39 +08:00


The Magnificent 7, the US titans of technology, have ruled supreme in stock markets for the past 2 years, delivering excellent returns. Their formerly unpopular managers are now billionaires with supersized political clout as friends of President Trump.

The fortunes of the US stock exchange have been determined by the 7: utahsyardsale.com Alphabet, owner of Google, Amazon, Apple, Meta - whose empire includes Instagram, Facebook and WhatsApp - Microsoft, the semiconductor colossus Nvidia and oke.zone Tesla.

There is some disagreement about who created the term Magnificent 7, based upon the western movie of the 1960s. Credit has been claimed by Bank of America and Goldman Sachs to name a few.

But there is a much larger disagreement regarding whether you need to continue to back these companies, either straight or through your Isa and pension funds.

Here's what you need to understand now.

The Magnificent 7, the US titans of innovation, (left to right) Amazon's Jeff Bezos, Tesla's Elon Musk, Microsoft's Satya Nadella, Meta's Mark Zuckerberg, Apple's Tim Cook, Nvidia's Jensen Huang and Alphabet's Sundar Pichai

Alphabet. EXPERT VERDICT: BUY

Alphabet, then referred to as Google, was established in 1998 by PhD trainees Sergey Brin and Larry Page.

Today the $2.5 trillion corporation is a digital marketing juggernaut.

Alphabet has diversified into cloud computing and branched off into Artificial Intelligence (AI) with the launch of its Gemini system.

It recently unveiled Willow, a new chip for quantum computing.

Boss Sundar Pichai, a rigorous vegetarian and fitness fanatic, took the top job in 2019. He is worth $1.3 billion and takes pleasure in an annual wage of $8.8 million.

But, despite such relocations and Pichai's management flair, Alphabet shares fell today after disappointing fourth quarter results and the statement that the group would be investing $75 billion in AI - more than expected.

This commitment highlights the level of competitors in the AI supremacy video game. Nevertheless analysts remain sanguine about Alphabet's capability to remain ahead, ranking the shares a 'purchase'.

Amazon. EXPERT VERDICT: BUY

Amazon may be understood for its next-day delivery service, but the most profitable part of the corporation is AWS - Amazon Web Services - the world's greatest supplier of cloud computing services

In 1994, Princeton graduate Jeff Bezos established Amazon - in a garage - as a bookseller. It is now the biggest online retailer with a market capitalisation of $2.5 trillion.

The most profitable part of the corporation is, nevertheless, AWS - Amazon Web Services - the world's greatest service provider of cloud computing services. It has a 30 per cent-plus share of this fast-expanding sector in which business outsource storage of information.

Amazon's financial investment in the AI Anthropic start-up was an effort to capture up with Microsoft's acquisition of OpenAI, creator of the popular ChatGPT system.

Bezos stood down as president in July 2021 and was changed by previous AWS employer Andy Jassy, but is now chairman, with a 9 percent stake in the company.

The Amazon founder has also enriched investors. Anyone who invested ₤ 1,000 when the business went public in 1997 would now be resting on ₤ 2,663,000.

The shares are $229 and experts believe they have even more to increase, despite indicators of a slowdown in this week's results. Just today brokers at Swiss bank UBS raised their target price to $275.

Apple. EXPERT VERDICT: BUY

Anyone who invested ₤ 1,000 in Apple shares in 1980 when it was listed on the stock exchange would now have ₤ 2.5 million

Apple was founded in 1976 by Steve Jobs and Steve Wozniak in the Los Angeles suburb of Los Altos in, you it, setiathome.berkeley.edu a garage. There followed an amazing duration of technical and design innovation. The company, which some regard as more of a luxury items group than a technology star, deserves $3.6 trillion. Its ambitions now depend upon AI.

Results for the final quarter of 2024 revealed that sales continue to be weak in China. Nevertheless, global profits for the 3 months were $124.3 billion, which was higher than projection.

Anyone who invested ₤ 1,000 in Apple shares in 1980 when it was noted on the stock market would now have ₤ 2.5 million. Over the past 12 months the shares have actually increased 20 percent to $228 and most experts rank them a 'purchase'.

Some of this optimism about the outlook is based upon affection for Tim Cook, Apple's president. He earned $75 million last year and rises every day at 5am to work out - throughout which time he never takes a look at his iPhone.

Meta. EXPERT VERDICT: BUY

Optimism over Meta's ability to gain the advantages of AI has actually pushed the share price 52 percent greater over the previous 12 months to $715

When 19-year old Harvard trainee Mark Zuckerberg established the Facebook social network in 2004 he most likely did not imagine it would end up being a $1.7 trillion corporation. Nor could he have actually pictured that, by 2025, his wealth would amount to $212 billion.

The business, which altered its name to Meta in 2021, likewise owns Instagram and WhatsApp.

In 2025, the emphasis is on AI - on which Zuckerberg is spending billions of dollars.

Aarin Chiekrie, an equities expert at financial investment platform Hargreaves Lansdown, argues that Meta is 'well placed to drive AI-related growth and continue its dominance in the advertisement and social networking world'.

Optimism over Meta's ability to gain the benefits of AI has pushed the share cost 52 percent higher over the previous 12 months to $715 - and nearly 1,770 percent since the company's flotation in 2011.

Despite the chaos triggered by the tip that Chinese firm DeepSeek had actually produced comparable AI models for far less than its US competitors, analysts affirmed their view that the shares are a 'purchase' with an average target cost of $727.

Microsoft. EXPERT VERDICT: BUY

Microsoft is now run by Satya Nadella, a computer engineering graduate and Trump fan who attributes his aspiration to the fitness center and telling himself to be grateful

Microsoft was established in 1975 by Harvard drop-out Bill Gates and a number of friends - in a garage, grandtribunal.org where else?

Today the company deserves more than $3 trillion.

In addition to the Windows operating system and the Microsoft Office suite made up of Excel, PowerPoint and Word, trade-britanica.trade its fiefdom encompasses the Azure cloud computing business, LinkedIn - and a large piece of OpenAI.

OpenAI developed ChatGPT, the best-known and most pricey brand in generative AI, and thus considered to be the most endangered by the Chinese DeepSeek.

But both may be winners given that a rise in need for items of all types is now expected.

Microsoft is now run by Satya Nadella, a computer system engineering graduate and Trump fan who attributes his aspiration to the fitness center and informing himself to be grateful. Microsoft's shares have underperformed those of its peers just recently however experts are keeping the faith.

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The existing share cost is $410. The average target cost is $507 and one expert is wagering on $650.

Nvidia. EXPERT VERDICT: BUY

In 30 years, Nvidia has altered from an unknown 3D graphics company for video games into a $2.9 trillion leviathan with a controlling position in the upscale microchips that power generative AI.

The founder and primary executive Jensen Huang is betting that many of the Magnificent Seven will continue to spend extravagantly with his firm. However, his company's appraisal has actually fallen in the middle of the panic over the DeepSeek trespasser.

Nvidia's shares have actually fallen by 6 per cent this year to $130, although they are still 250 times higher than a years ago. Analysts are backing Huang with an average target cost of $174.

Tesla. EXPERT VERDICT: HOLD

Tesla's sales, earnings and margins for the fourth quarter of 2024 were all lower than anticipated

Tesla is a cars and truck maker however it remains in the Magnificent Seven thanks to the software behind its self-driving vehicles. It has been led by Elon Musk, its president, given that 2008 and now the world's wealthiest male, worth $434 billion.

He is also President Trump's 'first friend' and co-head of Doge- the new US Department of Government Efficiency.

So excellent is his influence, enhanced by his ownership of the X (previously Twitter) platform, that some financiers appear prepared to overlook the most recent obstacles at Tesla.

The business's sales, profits and margins for the 4th quarter of 2024 were all lower than anticipated. Musk's political declarations are proving a turn-off in crucial European markets such as Germany.

Tesla may also be harmed by the elimination of Biden-era policies that promoted electric vehicles.

However, shares have actually soared 89 per cent in the previous six months, sustained by Musk's hopes for humanoid robots, robotaxis and AI to optimise the efficiency of self-driving cars of all kinds.

This detach between the figures caused one analyst to say that Tesla's shares have actually become 'divorced from the fundamentals', which might be why the shares are rated a 'hold' rather than a 'buy'.

Investors can not feel too difficult done by. Since 2014, the share rate has gone up 24 times to $374. Critics, nevertheless, stress that the wheels are coming off.