Meta Platforms (NASDAQ: META), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA) are nearing all-time highs, with year-to-date performance driven by advancements in artificial intelligence (AI) monetization. In contrast, the other four “Magnificent Seven” stocks—Amazon, Alphabet, Tesla, and Apple—are seeing declines. As of now, Meta, Microsoft, and Nvidia have each seen significant stock gains attributed to their strategic investments and integrations in AI technology.
Meta’s AI initiatives enhance user engagement on platforms like Instagram and Facebook, while Microsoft integrates AI features across its Office suite and Azure services. Nvidia dominates the AI hardware market with its GPUs, which are key in powering AI solutions. Notably, Nvidia boasts a profit margin of 51.7%, illustrating its effectiveness in converting revenue into profit.
The market currently values these three companies reasonably despite their high performances against the S&P 500, suggesting potential for continued growth. Investors are encouraged to consider these stocks with a long-term perspective, as they possess established business models and promising AI-related growth avenues.
