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Key Points
In 2023, the term “Magnificent Seven” refers to a group of seven leading technology companies with a combined market valuation of $19.7 trillion. Since the AI revolution gained momentum at the start of the year, these stocks have produced a median return of 163%, significantly outperforming the S&P 500’s 67% gain during the same timeframe.
The companies in this group include Nvidia, Microsoft, Apple, Amazon, Alphabet, Meta Platforms, and Tesla, all heavily investing in AI technology. Notably, the Vanguard Mega Cap Growth ETF, which includes 69 stocks, has 57.7% of its portfolio comprised of these seven companies.
Investing trends suggest that exposure to the Magnificent Seven could be beneficial for those seeking to capitalize on the ongoing AI revolution. Projections indicate that AI could create a $13 trillion opportunity in the software sector by 2030, with Nvidia expecting data center spending to exceed $1 trillion annually by 2028.
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