Market Update: The Shift in the “Magnificent Seven”
The “Magnificent Seven,” a term referring to a group of leading tech stocks including Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta Platforms, and Tesla, is undergoing a significant change as the focus shifts toward artificial intelligence (AI). Analysts now propose replacing Apple and Tesla with Taiwan Semiconductor (NYSE: TSM) and Broadcom (NASDAQ: AVGO) to better align with current market trends.
Taiwan Semiconductor, the main chip supplier for major companies like Apple and Nvidia, is projected to see a compounded annual growth rate of 25% from 2024 to 2029. Meanwhile, Broadcom, a key player in the AI chip market, expects substantial growth with average Wall Street projections of 63% for fiscal year 2026 and 52% for 2027. In contrast, Tesla’s profitability struggles, with a projected net income of approximately $15 billion based on its highest profit margins, raise doubts about its continued inclusion in this elite group.
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