While the ‘Magnificent Seven’ stocks have seen amazing gains and received extensive attention, it is crucial to note that not all experts are as enthusiastic.
The year 2023 has witnessed a significant shift in the stock market landscape, with a new group of companies dubbed MANATAM emerging as the driving force behind the market’s impressive surge.
While FAANG stocks featuring Facebook, now Meta Platforms Inc (NASDAQ: META), Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX), and Google’s parent company Alphabet Inc (NASDAQ: GOOGL) have dominated the tech sector for years, a fresh wave of growth has propelled the rise of the ‘Magnificent Seven’ stocks, aptly named MANATAM including Microsoft Corp (NASDAQ: MSFT), Apple, Nvidia Corp (NASDAQ: NVDA), Alphabet, Tesla Inc (NASDAQ: TSLA), Amazon, and Meta.
With significant gains recorded throughout the year, some experts including CNBC’s Jim Cramer noted that these companies have solidified their positions as winners in the investment landscape. Their remarkable performance has led to an astonishing disparity in market valuation gains, with the ‘Magnificent Seven’ outshining the rest of the Nasdaq 100 components by a wide margin.
Microsoft, a technology industry titan, has proved its tenacity with a 38% increase in stock value this year. Apple, the tech giant renowned for its innovative products and services, has continued to impress investors in 2023. With a 37% increase in its stock value this year, Apple has capitalized on its loyal customer base and robust product lineup.
NVIDIA, a pioneer in graphics processing units (GPUs) and artificial intelligence (AI) technologies, has seen its stock price rise by 159% in 2023. The increased demand for GPUs in gaming, data centers, and AI applications has fueled NVIDIA’s growth. Amazon, widely recognized as the leader in e-commerce, cloud computing, and various other sectors, has weathered the market storms with a 44% increase in its stock value.
Tesla, the pioneering electric vehicle (EV) manufacturer, has captivated investors with its sustainable vision and impressive product offerings. With a 66% rise in stock value, Tesla has continued to dominate the EV market, expanding its global reach and introducing groundbreaking energy storage solutions.
Alphabet, the parent company of Google, has demonstrated its resilience and innovation with a 39% increase in its stock value. Meta, previously known as Facebook, has experienced significant growth in 2023, with its stock value soaring by 120%.
Factors Driving the Growth of MANATAM Stocks
The investments made by the ‘Magnificent Seven’ stocks in artificial intelligence (AI) have played a vital role in further increasing their appeal and adding to their profits. Jim Cramer emphasized Microsoft’s performance, attributing it in part to the company’s $10 billion investment in an AI language processing tool called ChatGPT.
Furthermore, the Federal Reserve’s decision to pause interest rate hikes has benefited the entire technology industry, including the ‘Magnificent Seven’ stocks. The pause in interest rate hikes has alleviated investor anxieties and helped to establish a more stable market environment.
This has allowed IT companies to concentrate on their expansion strategies without the added pressure of increased borrowing prices.
While the ‘Magnificent Seven’ stocks have seen amazing gains and received extensive attention, it is crucial to note that not all experts are as enthusiastic. Nigel Green, a stock market commentator, has cautioned investors about the increasing noise and frenzy surrounding these stocks.
Green emphasizes the importance of portfolio diversity as one of the important points. He highlighted that overreliance on a particular sector or a small group of stocks from big tech companies can expose investors to heightened risk.
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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Source: https://www.coinspeaker.com/manatam-magnificent-seven-stocks/