The “Magnificent Seven” – a group of market-leading companies handpicked by CNBC’s Jim Cramer – have been strutting their stuff on the financial dance floor since 2023. Investors have been enamored with their synchronized moves, but is it time for a partner switch?
Apple in the Spotlight: The Odd One Out
While its peers have been hitting impressive revenue growth milestones, Apple seems to be struggling to keep up. With revenue either stagnating or shrinking, the tech giant stands out like a wallflower at a lively party. In contrast, Tesla, while facing some bumps, still shows promise for a brighter future according to analyst projections.
What sets Apple apart even more is its lack of a concrete artificial intelligence (AI) strategy. In a world where AI is the latest trend, Apple’s reluctance to join the dance could be its downfall. With competitors like Samsung already making bold AI moves, Apple risks being left behind on the dancefloor.
| Company | 2024 Revenue Growth | 2025 Revenue Growth |
|---|---|---|
| Tesla | 13.8% | 20.6% |
| Apple | (6%) | 6.4% |
Taiwan Semiconductor Manufacturing: A New Dance Partner
Stepping onto the floor in place of Apple is Taiwan Semiconductor Manufacturing Company (NYSE: TSM), known as TSMC in the business world. While Apple may be fumbling, TSMC is ready to take the lead with its chips in hand.
Your average chip manufacturer, TSMC has faced some dips due to a chip supply glut in recent times, but its revenue is starting to make an upward climb. Plus, with exposure to the AI world through its chip offerings, TSMC is primed to ride the AI wave alongside big players like Nvidia.
The future looks bright for TSMC, with growth projections putting it at the top end of the leaderboard. Wall Street analysts are nodding in agreement, forecasting strong revenue growth for 2024 and 2025. It seems like TSMC is ready to cha-cha its way to success.
So, as the music changes and the investment dance evolves, perhaps Apple’s time in the limelight is fading. TSMC, on the other hand, may be the rising star investors have been waiting for.
Even Apple’s long-time supporters like Warren Buffett and Berkshire Hathaway are starting to shift their weight, possibly signaling a changing tide for the stock market. With TSMC in the mix, the “Magnificent Seven” may have found its missing piece for an even stronger ensemble.
