In the financial world, the term "Magnificent Seven" is a fun moniker used to collectively refer to the largest artificial intelligence (AI) stocks in the world: Nvidia, Apple, Microsoft, Alphabet, Amazon, Meta Platforms, and Tesla.
Artificial intelligence stocks have produced solid gains for several years , but they recently hit a big bump in the road.
Global spending on artificial intelligence (AI) is expected to remain solid in 2025, with market research firm IDC estimating that organizations are likely to pour $337 billion into this technology as they integrate AI tools into their business operations.
Many growth stocks stumbled in 2022 and 2023 as rising interest rates compressed their valuations and drove investors toward more conservative investments. But in 2024, many of those stocks soared as interest rates declined again.
The $500 billion AI infrastructure initiative by OpenAI, SoftBank, Oracle, and MGX will transform multiple sectors, creating generational investment opportunities. Nvidia, TSMC, and Broadcom are poised to benefit significantly from the AI infrastructure build out, particularly in the semiconductor sector. Constellation Energy and Vistra are uniquely positioned to meet the massive energy demands of AI infrastructure, leveraging their clean energy capabilities.
After a slow start to the year, U.S. equities have surged to new record highs following President Trump's inauguration. By Wednesday's close, the SPDR S&P 500 ETF Trust NYSE: SPY had gained over 4% for the week, bringing its year-to-date (YTD) return to an impressive 3.47%.
It isn't a bad idea to follow billionaires' investment strategies.
Broadcom (NASDAQ: AVGO) is a data center semiconductor and software company.
Last year was quite impressive for growth stocks, especially for those tied to advanced artificial intelligence (AI) technologies. The tech-heavy Nasdaq Composite rose by about 28.6% in 2024.
Despite overvaluation, the technology sector will remain buoyant in the long term supported by its relentless innovative power. Five AI-Centric stocks to buy are: NVDA, AVGO, QCOM, INOD, MRVL.
Dividend growth stocks like IDCC, FOX, AVGO, GBX and AYI are a major source of consistent income for investors when returns from the equity market are at risk.
When it comes to widely followed Wall Street money managers, Berkshire Hathaway's (BRK.A 0.64%) (BRK.B 0.94%) CEO Warren Buffett is in a class of his own. In the roughly six decades since taking the reins, the aptly named "Oracle of Omaha" has overseen an aggregate return in his company's Class A shares (BRK.A) of around 5,422,200%, which blows the cumulative total return (including dividends) of 38,751% for the benchmark S&P 500 over the same timeline out of the water.