Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Meta Platforms and Tesla 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 (AMZN) is out of its buy range above a cup base’s 145.86 buy point. The 5% buy area went up to 153.15. Shares dropped 0.1% Tuesday, just off their 52-week high.
Amazon stock is an IBD SwingTrader idea.
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 Breaks Out Past Buy Point
Google parent Alphabet (GOOGL) is in buy range above a 139.42 buy point in a cup with handle amid Tuesday’s 0.5% gain. Shares are rebounding from their 50-day line.
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) is the top performer, with a scorching 235% year-to-date return through 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 1.2% Tuesday.
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 Retakes Buy Point
Tesla (TSLA) rose 1.25% Tuesday, back above an early entry at 252.75, while a big double-bottom pattern has an official 278.98 buy point.
In recent weeks, Tesla stock broke above a trendline and decisively cleared its 50-day line. That was an aggressive buy signal.
On Dec. 13, 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 (AAPL) and Microsoft (MSFT) traded mixed in the stock market today.
Apple stock moved down 0.3% Tuesday. 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 in recent weeks. The stock gained 0.1% Tuesday.
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 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 rose 0.55% Tuesday, just shy of a new 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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