Stocks like Apple and Tesla are underperforming, while Palantir and Broadcom show growth potential

The “Magnificent Seven” stocks, including Apple and Tesla, are facing uneven performance in 2025. Analysts suggest replacing them with Palantir Technologies and Broadcom for better growth opportunities.

Apple’s slow revenue growth and lack of innovation, especially in AI, have led to underperformance. In China, it’s losing market share to local rivals and may face challenges if the deal with Alphabet over default search engine placement ends.

Tesla’s struggles stem from CEO Elon Musk’s controversial political actions, leading to protests and boycotts. Its robotaxi business faces skepticism, while Alphabet’s Waymo leads in driverless ride-sharing.

Palantir’s success lies in accelerating revenue growth and a strong customer base, particularly in the U.S. government sector. Its AI platform and recent NATO contract showcase growth potential in defense.

Broadcom’s revenue growth and AI networking portfolio highlight its potential. Custom AI chips for hyperscalers offer a significant opportunity, positioning it for growth alongside Palantir.

Investors looking for growth opportunities may consider investing in Palantir and Broadcom, as they show promise for future growth compared to Apple and Tesla in the current market landscape.

Read more at Nasdaq: “Magnificent Seven” Makeover: Which Stocks Have Earned a Spot, and Which Haven’t?