Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Meta Platforms and Tesla lived up to their name in 2023 with big gains. The Magnificent Seven stocks are among the best stocks to buy and watch in the stock market today.
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Due to their outsized market capitalizations, Magnificent Seven stocks hold a disproportionate influence on the market-cap weighted Nasdaq composite and S&P 500 indexes.
For an in-depth look at this issue, check out IBD’s page on the Magnificent Seven weightings, market capitalizations and the companies’ latest news stories.
Magnificent Seven Stocks Performance
| Company Name | Symbol | 2023 YTD Performance |
|---|---|---|
| Alphabet | (GOOGL) | +50% |
| Amazon | (AMZN) | +79% |
| Apple | (AAPL) | +52% |
| Meta Platforms | (META) | +178% |
| Microsoft | (MSFT) | +55% |
| Nvidia | (NVDA) | +235% |
| Tesla | (TSLA) | +106% |
Source: IBD Data As Of Dec. 15, 2023
Magnificent Seven Stocks: Amazon Above Buy Point
Amazon (AMZN) is moving further above a cup base’s 145.86 buy point, as shares rose 1.5% Tuesday.
Through its Amazon Bedrock platform, the e-commerce and cloud giant provides a fully managed service offering a choice of high-performing foundation models (FMs) from leading AI companies like AI21 Labs, Anthropic, Cohere, Meta and Stability AI.
Alphabet Retakes Entry
Google parent Alphabet (GOOGL) is set to retake a 139.42 buy point in a cup with handle amid Tuesday’s 1.7% rise.
Google debuted its Gemini AI model on Dec. 6. However, the demo video displaying the AI’s capabilities turned out to be edited, Bloomberg reported. Google admitted the demo was created using still image frames from the footage with additional prompts via text, as well as edited to make Gemini response times appear quicker.
Nvidia Stock Leads Magnificent Seven
Among the Magnificent Seven stocks, Nvidia (NVDA) was the top performer, with a scorching 235% year-to-date return through Dec. 15.
The AI giant is extended past a double-bottom’s 476.09 buy point after finding support at the 50-day moving average last month. The 5% buy area ran up to 499.89.
Now, NVDA stock is breaking out past a new flat base’s 505.48 buy point and is in buy range.
Nvidia stock rallied 3.3% Tuesday, hitting another record high. NVDA is an IBD Leaderboard stock.
On Nov. 28, the company expanded its push into AI, unveiling business intelligence for chatbots, copilots and summarization tools with its enterprise-grade generative AI microservice.
NeMo Retriever — a new offering in the Nvidia NeMo family of frameworks and tools for generative AI models — helps organizations enhance their generative AI applications. NeMo Retriever helps generative AI applications provide more accurate responses through Nvidia-optimized algorithms.
Tesla Stock Breaks Key Support
Tesla (TSLA) skidded 2.5% Tuesday, breaking down below its 50-day line, a key support level to watch. Meanwhile, a big double-bottom pattern has an official 278.98 buy point.
On Jan. 2, Tesla deliveries in the fourth quarter exceeded Wall Street predictions, as the global EV giant sold a record-setting number of vehicles in Q4 and hit full-year expectations, according to data released by Tesla.
Elon Musk’s Tesla reported that it produced 494,989 units and delivered 484,507 vehicles during the fourth quarter. For the full year, vehicle deliveries grew 38% to 1.81 million while production increased 35% to 1.85 million units.
Dow Jones Stocks In Magnificent 7: Apple, Microsoft
Two Dow Jones names among the Magnificent Seven stocks, Apple (AAPL) and Microsoft (MSFT) traded mixed in the stock market today.
Apple stock moved down 0.6% Tuesday. Following a Dec. 5 breakout, shares are below a cup-with-handle entry at 192.93.
According to MacRumors and other outlets, Apple could have a generative AI feature — internally known as Apple GPT — available on the iPhone and iPad sometime late next year.
Meanwhile, Microsoft stock regained its 366.78 cup-base buy point in recent weeks. The stock rose 0.2% Tuesday, still holding above the entry.
In recent weeks, the software giant received several upbeat reports from Wall Street analysts.
Investment bank Truist Securities initiated coverage of Microsoft stock with a buy rating and set a three-year price target of 600. Meanwhile, Macquarie kept its outperform rating on MSFT stock and raised its price target to 430 from 405.
Meta Stock Hits New High
Shares of Meta Platforms (META) continue to hold above their 50-day line after a test of that level in early December. The support creates a buy zone that goes to about 353. Meta stock inched higher Tuesday, just off last week’s 52-week high.
META stock boasts a 98 out of 99 IBD Composite Rating, per the IBD Stock Checkup.
In recent weeks, Chief Executive Mark Zuckerberg said that Threads is now available to users in the European Union. The Facebook parent company launched Threads as a separate app in July. It is a competitor to the Elon Musk-owned X, formerly Twitter. The European rollout was reportedly delayed by regulatory uncertainty in the EU over the use of personal data on the app.
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