Dubbed the Magnificent Seven stocks, Apple (AAPL), Microsoft (MSFT), Google parent Alphabet (GOOGL), Amazon.com (AMZN), Nvidia (NVDA), Meta Platforms (META) and Tesla (TSLA) have 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.
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: Amazon In Buy Range
Amazon stock is nearly past a buy range above a cup base’s 145.86 buy point. The 5% buy area goes up to 153.15. Shares added 2.7% Monday, hitting a new 52-week high.
Amazon is an IBD SwingTrader stock.
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.
Nvidia Stock Leads Magnificent Seven
Among the Magnificent Seven stocks, Nvidia is the top performer, with a scorching 235% year-to-date return through Friday, Dec. 15.
The AI giant is in buy range from a double-bottom’s 476.09 buy point after finding support at the 50-day moving average earlier this month. The 5% buy area runs up to 499.89. Nvidia stock rose 2.4% Monday, topping the 500 price level for the first time since Nov. 22.
Nvidia is an IBD Leaderboard stock.
On Nov. 28, the company expanded its push into AI, unveiling business intelligence for chatbots, co-pilots 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 Hits Buy Point
Tesla stock dropped 0.6% Monday. The electric-vehicle leader is breaking out past an early entry at 252.75, while a big double-bottom pattern has an official 278.98 buy point.
Last week, Tesla stock jumped nearly 4%, breaking above a trendline and decisively clearing the its 50-day line. That’s an aggressive buy signal.
Also last week, shares briefly sank below their 50-day line on news that two Model 3 trims will lose all of their Inflation Reduction Act (IRA) tax credits in 2024. Meanwhile, Tesla will also perform a software update on more 2 million vehicles after the National Highway Traffic Safety Administration determined the EV giant’s Autopilot system is prone to misuse after reviewing 1,000 accidents.
Dow Jones Stocks In Magnificent 7: Apple, Microsoft
Two Dow Jones names among the Magnificent Seven stocks, Apple and Microsoft traded mixed in the stock market today.
Apple stock moved down 0.85% Monday after Bloomberg reported that China expanded its ban on Apple devices late Friday.
Following a Dec. 5 breakout, shares are still in a buy range above 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 Friday. The stock rose 0.5% Monday, as it sought to hold above the entry.
Last week, 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 Rebounds From Key Level
Shares of Meta Platforms continue to rebound from 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 jumped 2.9% Monday, hitting a new high.
META stock boasts a 98 out of 99 IBD Composite Rating, per the IBD Stock Checkup.
Last week, 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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