The Magnificent Seven, Apple (AAPL), Microsoft (MSFT), Google parent Alphabet (GOOGL), Amazon.com (AMZN), Nvidia (NVDA), Meta Platforms (META) and Tesla (TSLA), collectively have lived up to their name in 2023. Several of the megacaps could be setting up for a fantastic finish.
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All of these companies, with the possible exception of Apple, are seen in some part as artificial intelligence plays, with Nvidia and Microsoft among the big leaders. Nvidia stock, Meta Platforms and Tesla, which have more than doubled in 2023, while Amazon stock and Google have run up more than 50%. Microsoft and Apple stock, the laggards of the megacap group, are up more than one-third this year.
More to the point, Tesla stock, Meta and Google stock are actionable now. Nvidia and Microsoft stock are just below early entries. Even Apple is testing a key level, with a possible early entry just above that. Only Amazon needs more extensive repair work.
With the stock market in a confirmed uptrend, can the Magnificent Seven end 2023 on a high note?
Nvidia stock and Meta are on IBD Leaderboard, with TSLA stock on the Leaderboard watchlist. Meta stock is on SwingTrader. MSFT stock is on IBD Long-Term Leaders. Meta, Nvidia and Tesla stock are on the IBD 50.
Magnificent Seven Stock Performance
| Company | Ticker | Market cap, in trillions | 2023 gain |
|---|---|---|---|
| Apple | AAPL | $2.80 | 37.80% |
| Microsoft | MSFT | $2.45 | 37.53% |
| Alphabet | GOOGL | $1.75 | 56.89% |
| Amazon | AMZN | $1.32 | 52.69% |
| Nvidia | NVDA | $1.12 | 209.79% |
| Tesla | TSLA | $0.82 | 110.80% |
| Meta Platforms | META | $0.82 | 164.55% |
Apple Stock
Apple stock is up 37.8% in 2023 through Oct. 9, though it’s some distance from its July 19 peak of 198.23. The Dow Jones tech titan rose 0.85% to 178.99 on Monday, just pennies below a sliding 50-day line. Shares are rebounding from their Sept. 28 low of 167.62, just above the 200-day line.
AAPL stock has a 189.98 double-bottom buy point. Investors could use a downward-sloping trendline, currently around 182, as an early entry.
But Apple’s fundamentals aren’t great. The 50-day line also could serve as resistance and actually offer a shorting opportunity, especially if the market rally fatlers.
Microsoft Stock
Microsoft stock has climbed 37.5% in 2023 through Monday, well off its July 18 high of 366.78. After retaking the 50-day line on Friday, shares rose 0.8% on Monday to 329.82. MSFT stock has 366.78 consolidation buy point. But investors could use 340.86 as an early entry. A downward-sloping trendline, currently around 331, would offer an aggressive entry while still being close to the 50-day line.
Microsoft earnings for fiscal Q1 2024 are set for Oct. 25.
Google Stock
Google stock has leapt 56.9% in 2023. Shares hitting an 18-month closing high on Monday, edging up 0.6% to 138.42. Google stock is still actionable from the 50-day line, with the 52-week intraday high of 139.16 looming close.
Google earnings for Q3 loom Oct. 24.
Amazon Stock
Amazon stock has rallied 52.7% this year. Shares are off their 52-week high of 145.86 set on Sept. 14. On Monday, AMZN stock nudged 0.2% higher to 128.26, moving sideways for the past several sessions after skidding in late September. The e-commerce and cloud-computing giant needs to reclaim its 50-day line.
Amazon earnings are on tap Oct. 26.
Nvidia Stock
Nvidia stock leads the Magnificent Seven and the S&P 500 with a 209.8% surge in 2023. Shares fell 1.1% to 452.68 on Monday, but held the 50-day line after retaking that key level Friday. NVDA stock has a new consolidation with a 502.66 buy point, based off the Aug. 24 record high. A move above Friday’s high of 457.89 would offer an early entry.
One reason for Nvidia’s modest dip was a Friday night report from The Information that Microsoft (MSFT) will debut an AI chip next month to lessen its dependence on Nvidia GPUs. OpenAI also reportedly is working on its own AI chip.
Meta Stock
Meta stock has surged 164.55% this year, the No. 2 S&P 500 performer. The Facebook and Instagram parent isn’t far from its 20-month high of 326.20 set on July 28. That also marks the top of a consolidation. Meta stock advanced 0.9% to 318.36 on Monday. That’s after jumped 3.5% on Friday. That cleared a 310.64 cup-with-handle buy point as well as a 312.87 entry.
Third-quarter Meta earnings are scheduled for Oct. 25.
S&P 500: Tesla Stock
Tesla stock has leapt 110.8% in 2023, making it yet another top S&P 500 performer. Shares are modestly below the July 19 high of 299.29, which marks the top of a cup-with-handle base. TSLA stock ticked down 0.3% to 259.67 on Monday, once again rebounding from near the 50-day line to end near session highs. The EV giant has a 278.98 official buy point, according to MarketSmith analysis. It’s already actionable from clearing the 50-day line last week. Investors could use a move above last Thursday’s high of 263.60 as another early entry within the handle.
Keep in mind, Tesla earnings for the third quarter are due Oct. 18.
Please follow Ed Carson on X/Twitter at @IBD_ECarson, Threads at @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.
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