From Nasdaq:

The Magnificent Seven group of megacap technology stocks, including Apple, Amazon.com, Alphabet, Meta Platforms, Microsoft, Nvidia, and Tesla, doubled in value last year, outperforming the Nasdaq 100 Stock Index. All stocks have continued their gains this year, except for Apple and Tesla.

These technology stocks have rallied due to optimism about the U.S. economy, expectations of peak interest rates, and sustained growth in artificial intelligence. Goldman Sachs has stated that the fate of the Magnificent Seven stocks will depend on their ability to deliver rapid revenue growth in 2024.

Growth estimates and forecasts for the seven megacap technology stocks differ, leading some analysts to recommend a more selective approach when investing in the group. This quarter’s earnings season has been mixed for the seven stocks, with some exceeding expectations while others face challenges with demand and profit margins.

JPMorgan Chase warns that the increasing dominance of a small number of stocks, similar to the dot-com bubble, raises the risk of a selloff. However, Morgan Stanley believes that Apple, Alphabet, Microsoft, and Nvidia can continue outperforming amid strong earnings revisions.

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Read more: Can All of the Magnificent Seven Stocks Maintain their Dominance This Year?