AI, tech stocks, and the Magnificent Seven: What investors should be looking for

Dominating the tech-heavy S&P 500 (^GSPC) this year were the Magnificent Seven tech stocks — Amazon (AMZN), Apple (AAPL), Alphabet (GOOG, GOOGL), Nvidia (NVDA), Meta (META), Microsoft (MSFT), and Tesla (TSLA) — which are up around 70% year-to-date. Many of these companies have, in some form or another, implemented the buzziest tech of Wall Street: Artificial intelligence.
With such a strong performance, it begs the question of whether these companies and AI have hit their peaks or will they continue to grow in 2024? TECHnalysis Research, LLC President and Chief Analyst Bob O’Donnell joins Yahoo Finance to discuss AI and its use within these companies as we head into 2024.
“You think about things like Microsoft’s 365, Google’s Workspace. Now, what’s happening is really it’s been a tech industry discussion and a little bit of a financial industry discussion, but those tools are starting to get into the hands of people, and really, we won’t see that until 2024,” O’Donnell says. “And I think a lot of people are just going to have their minds blown by this stuff, because it really is powerful stuff.”
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
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