Retirement Investments Lifted by Magnificent Seven Stocks

Tuesday, April 09, 2024

The ‘Magnificent Seven’ stocks, comprising Apple, Microsoft, Amazon, Nvidia, Meta Platforms, Tesla, and Alphabet (parent company of Google), have been the stars of the stock market over the past year. Anyone invested in these stocks have benefitted from these Tech giants collective growth of 80%, significantly outperforming the broader market indices.

 Their exceptional performance has been fuelled by various factors, including their significant presence in the artificial intelligence (AI) sector.
These companies have been at the forefront of AI advancements, with each one offering unique plays in this field. From dominating online search and advertising like Alphabet, to reshaping retail globally and leading in cloud computing like Amazon and Microsoft respectively, they have shown resilience and innovation across various sectors.
Stock investors in these companies over these past twelve months over 2024/2023 have witnessed remarkable returns. Any retirement investment portfolio including these companies has benefitted from this uplift while the rest of the market has bobbed along.  
The Magnificent Seven’s focus on AI technologies and big data collection, has attracted stock investors looking for exposure to these high-growth areas. Nvidia, who are leaders in microchip manufacturing, have particularly stood out as a star performer, tripling in value over the past year due to global demand for their unique microchip manufacturing technology. 
Meta Platforms (formerly Facebook) have also seen substantial growth, rising by 185%. Amazon, Alphabet, and Microsoft have shown solid gains as well. Despite a slight lag in performance, Apple has still managed a 22% increase with further plans for AI development. Tesla is the only one that experienced a decline over the past year but has seen an impressive 900% rise over five years!
There have been several benefits for stock investors. Firstly, these companies have demonstrated consistent growth and resilience even during challenging market conditions. Secondly, their strong presence in AI and technological innovation provides a promising outlook for future returns. Thirdly, their performance has outpaced broader market indices, offering savvy investors attractive returns.
The success of these stocks is not just about their past performance but also about their potential for future growth. Investors are optimistic about the AI sector's expansion and how these companies are positioned to benefit from it. Whether that growth has been already been factored into the current valuation is yet to be demonstrated.
Investors should always consult an experienced financial adviser and carefully consider their options when evaluating stock investment opportunities. You should make informed decisions aligned with your financial goals and risk tolerance levels. We can help. 
Take advantage of comprehensive investment planning services from leading Wide Bay and Sunshine Coast retirement investment planners, Maher Digby Securities, the retirement planning specialists.
For more Information contact Mark Digby at Maher Digby Securities Pty  Ltd - Financial Advisers – AFSL No. 230559. This document was prepared without taking into account any person’s particular objectives, financial situation or needs. It is not guaranteed as accurate or complete and should not be relied upon as such. Maher Digby Securities does not accept any responsibility for the opinions, comments, forward looking statements, and analysis contained in this document, all of which are intended to be of a general nature. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend consulting a financial adviser