The Magnificent Seven tech stocks, including Alphabet Inc
These tech giants, known for their stellar performance last year, have returned 4.4% this month, outperforming the S&P 500.
Investors are flocking to tech stocks, with approximately $4 billion poured into tech funds in the past two weeks, marking the most significant inflow since August, the Wall Street Journal reports.
In 2023, these seven stocks collectively doubled in value, adding a staggering $5.1 trillion to their market capitalization.
Among these tech giants, Nvidia is a critical player in the ongoing tech-driven rally.
The company's success is closely linked to the surging demand for semiconductor chips, especially those used to power artificial intelligence (AI) programs.
Taiwan Semiconductor Manufacturing Co
Analysts remain bullish on Nvidia, citing improving PCs, AI deep learning, and inferencing markets now with generative AI tailwinds, gaming trends, automotive, and data centers.
The Big Tech stocks remain invested in ramping up their AI capabilities. Analysts have voiced $1 trillion in AI-driven opportunity for Nvidia being the frontrunner in GPU and chip supply.
This growing demand is a critical factor in the resurgence of these tech stocks and the broader stock market.
While the Magnificent Seven tech stocks have been performing well, it's important to note that their returns this year, although impressive, have not reached the levels seen in the previous January.
Despite the slightly more modest outlook, Wall Street analysts recommend these stocks, projecting an average return of 8.6% for the group over the next 12 months.
