All of the "Magnificent Seven" equities outperformed the S&P 500 in 2023. According to JPMorgan Wall Street experts, these equities are not expensive despite their share price gains.
They said, "There is a concern over the very strong outperformance of Mag-7, but we note that the group is currently trading less stretched than a few years ago, given earnings delivery." Analysts considered these seven equities inexpensive compared to the S&P 500.
Three of the seven corporations are poised to grow sales for years, and Wall Street experts beyond JPMorgan think they're undervalued. The firms are Nvidia (NASDAQ: NVDA), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Tesla.
Due to their diverse businesses, this trio diversifies your stock portfolio. Here's why these three Magnificent Seven stocks are worth buying now.
1. Nvidia Nvidia's artificial intelligence semiconductor chip leadership makes it a good investment. The company's products are so popular that CEO Jensen Huang had to explain how Nvidia distributes its AI chips fairly
The fiscal fourth quarter concluded Jan. 28 with record revenue of $22.1 billion due to Nvidia's market supremacy. The revenue rise from last year was staggering 265%. Q1 sales are expected to reach $24 billion as the company continues its rapid rise. Compare to last year's $7.2 billion Q1 revenue.
Nvidia also profits from AI sector growth. This market is expected to grow from $306 billion in 2024 to $739 billion by 2030. Wall Street expects Nvidia stock to reach $907 on average
This makes sense since Nvidia will enjoy revenue growth in the growing AI business for years.
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