From Nasdaq Inc.:

The Magnificent Seven movie title was repurposed in 2023 by Bank of America analyst Michael Hartnett to describe the seven most influential tech stocks, including Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. These companies are anticipated to continue thriving due to emerging markets like AI and cloud computing.

1. Nvidia saw stratospheric growth in 2023, with a 206% year-over-year increase in revenue and over 1,600% rise in operating income. Dominance in AI chip sales and a projected $1 trillion AI market in 2030 positions Nvidia for another year of outperformance.

2. Alphabet is poised for significant growth thanks to its 2023 unveiling of a highly anticipated AI model, Gemini. With its massive user base and advertising revenue, Alphabet could leverage AI to expand its offerings and improve user experience. Projected earnings averaging nearly $7 per share next year suggest potential share price growth of 21%.

Alphabet and Nvidia are two of the “Magnificent Seven” stocks with compelling potential for outperformance in 2024. Both companies have positioned themselves to capitalize on the burgeoning AI market, suggesting significant growth ahead. Investors may want to consider these two stocks for their portfolios as they could outperform the Nasdaq Composite to deliver strong returns this year.

Before investing in Nvidia, consider The Motley Fool’s analysis and advice on the 10 best stocks for investors to buy now. While Nvidia wasn’t on this list, there are other stocks with the potential for substantial growth over the coming years, and the Stock Advisor service has outperformed the S&P 500 since 2002. As you evaluate potential investments, keep these factors in mind.



Read more: 2 “Magnificent Seven” Stocks That Could Outperform the Nasdaq in 2024