of S&P500 The index has soared over the past 16 months, recovering from bear market lows to reach record levels and confirming a new bull market. And this movement has been led by one group of stocks in particular. Dubbed the “Magnificent Seven” after the 1960 Western movie, these companies are technology stocks, each a leader in their specialized field.
Some investors may worry that after such a rally, it's too late to join the stock market stars. The fear is that prices could get too high and stagnate or fall. But if the company has a strong long-term outlook, a stock with impressive momentum could still have plenty of room to play. And that's true of some of today's best-performing stocks. Check out the two Magnificent Seven companies to buy Handover Fist now.
1. Nvidia
Nvidia (NASDAQ:NVDA) sells the H100 graphics processing unit (GPU), the world's highest-performance artificial intelligence (AI) chip that powers critical operations such as AI model training and inference. This has led to Nvidia's revenue and net income recently surging by triple digits and reaching record levels. And it's also helped the stock price soar more than 240% over the past year.
Of course, there are rivals as well. Advanced Micro Devices and intel There are many companies in this market, but so far NVIDIA has shown it has what it takes to stay ahead. And at the company's GTC AI conference this week, CEO Jensen Huang announced product launches and updates that give us reason to be optimistic.
One piece of news in particular is the upcoming release of Nvidia's Blackwell architecture and chips. The platform, which will be available later this year, will enable customers to run generative AI on large-scale language models (LLMs) at his 25 times lower cost and energy consumption levels than previous generations.
CEO of the world's largest technology company meta platform to tesla They commented on Blackwell's announcement and indicated that they are open to using the platform. “Right now, there's nothing better for AI than his NVIDIA hardware,” Tesla's Elon Musk said in a statement announcing his Nvidia Blackwell. And the largest cloud companies said they are ready to make the technology available to customers.
All of this points to a new era of growth ahead for the chip giant, meaning that trading at 36 times forward earnings, Nvidia still looks like a buy today.
2.Amazon
Amazon (NASDAQ:AMZN) is a great tech stock to buy now, as it has already benefited and is poised to benefit from three growth areas: e-commerce, cloud computing, and AI. The company is a leader in both e-commerce and cloud computing services, and is investing heavily in AI to drive revenue in both businesses.
First, AI aside, Amazon has become an e-commerce giant and continues to do so thanks to its Prime membership service, which provides members with many perks that keep them coming back. AI has the potential to reduce Amazon's costs and improve the shopping experience for customers, which could lead to increased revenue. Amazon uses AI to streamline its e-commerce operations, finding the best shipping routes and reducing delivery times, and using AI to help customers find the products they need. These are just some examples.
Amazon provides a wide range of services to its customers through its cloud business, Amazon Web Services (AWS). These services range from enhancing LLM training to customizing a customer's existing LLM. AWS is already a leader in the cloud, so if a customer is interested in launching his AI project, there is a possibility to do it on AWS.
So Amazon leverages AI to improve its operations, save time and money, and sell AI services to its customers. This means that in the field of AI he can achieve two victories.
Given this, and Amazon's long track record of earnings growth, the stock, which trades at 42 times forward earnings estimates, looks like a buy today.
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John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool's board of directors. Randi Zuckerberg is a former head of market development and spokesperson at Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool's board of directors. Adria Cimino has held positions at Amazon and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Meta Platforms, Nvidia, and Tesla. The Motley Fool recommends Intel and recommends the following options: These are a long call on Intel at $57.50 in January 2023, a long call on Intel at $45 in January 2025, and a short call on Intel at $47 in May 2024. The Motley Fool has a disclosure policy.
2 'Magnificent Seven' Stocks to Buy Hand Over Fist Now was originally published by The Motley Fool
