Latest news with #MagnificentSeven
Globe and Mail
a day ago
- Business
- Globe and Mail
Tariff-Led Volatility Ahead for Big Tech? ETFs in Focus
The tech industry may face some ups and downs in the near term, with new tariffs expected to begin in August. Gene Munster of Deepwater Asset Management told Yahoo Finance that the delayed rollout adds uncertainty, especially for the December quarter. NVIDIA and Apple are among tech firms temporarily shielded but still under scrutiny. NVIDIA continues to grapple with a ban on chip sales to China, while Apple faces pressure to shift manufacturing to the United States or face a potential 25% tariff. Semiconductors in the Crosshairs Trump has hinted at more tariffs on semiconductors — a move that could raise prices on both components and finished products, potentially hurting consumer electronics sales. According to Bob O'Donnell of TECHnalysis Research, the lack of clarity may be more damaging than the tariffs themselves, as quoted on Yahoo Finance. Should You Fear Short-Term Volatility? The rise of AI will keep driving the market up, as companies continue to spend heavily on technology and related areas. Tech companies are investing billions in data centers and AI chips to support the development of AI systems. NVDA became the first company to reach a $4 trillion market cap on July 9, driving a sharp rally in the technology sector and the AI boom. Other 'Magnificent Seven' stocks, Microsoft MSFT, Apple AAPL, Alphabet GOOGL, Meta Platforms META and Amazon AMZN, also rallied lately on the AI euphoria and easing tariff tensions after the April shock. The technology sector is among the major growth drivers for the second-quarter earnings season. There was initially significant pressure on Tech sector Q2 earnings estimates, but the negative revisions trend notably stabilized in the subsequent weeks. Long-Term Outlook: Still Strong The global shift toward digital technology has boosted e-commerce in areas like remote work, entertainment, and shopping, making the sector stronger. The fast growth of technologies such as cloud computing, big data, the Internet of Things, wearables, VR headsets, drones, virtual reality, machine learning, digital communication, blockchain, and 5G will keep driving this momentum, irrespective of the tariff threat. Cybersecurity: A Growing Priority Cybersecurity is another prominent area. Given the recent surge in the adoption of AI technology, the need for cybersecurity becomes increasingly evident. An inevitable increase in cybersecurity spending is expected, driven by rising cyberattacks and the drastic financial fallout from them. The global cybersecurity market is projected to grow at a compound annual growth rate (CAGR) of 12.9% between 2025 and 2030, according to a new study by Grand View Research. Tech ETFs in Focus Investors can thus play any dip noticed in the technology-based exchange-traded funds (ETFs) like Select Sector SPDR Technology ETF XLK, Vanguard Information Technology ETF VGT, VanEck Vectors Semiconductor ETF SMH, SPDR S&P Software & Services ETF XSW, First Trust NASDAQ Cybersecurity ETF CIBR and Global X Cloud Computing ETF CLOU in the near term. Want key ETF info delivered straight to your inbox? Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports VanEck Semiconductor ETF (SMH): ETF Research Reports Alphabet Inc. (GOOGL): Free Stock Analysis Report First Trust NASDAQ Cybersecurity ETF (CIBR): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports SPDR S&P Software & Services ETF (XSW): ETF Research Reports Global X Cloud Computing ETF (CLOU): ETF Research Reports Meta Platforms, Inc. (META): Free Stock Analysis Report
Yahoo
2 days ago
- Business
- Yahoo
'Magnificent 7' check-in: Why these 3 names might not 'belong'
Spear Invest founder and chief investment officer Ivana Delevska joins BD8 Capital Partners CEO and chief investment officer Barbara Doran and Market Catalysts host Julie Hyman to check in on the "Magnificent Seven," noting the growing dissimilarities between stock names. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. There's a growing divergence within that magnificent seven as companies like Nvidia hit $4 trillion in market cap. Not all names are continuing to outperform. So, should we just be rethinking that name entirely? We've been talking about this for a little while, but it's time to talk about it again with Nvidia hitting that milestone. Joining me now, Ivana Delevska, Spear Invest founder and CIO, and Barbara Doranstowith, me, BD8 Capital partner, CEO and CIO. Ivana, you know, we've, we've been talking about this for a little while here because we have had these companies not moving as a monolith for quite a while here. So, as an investor, how should people be thinking about the so-called mag seven? Should we just be investing in individual companies? Absolutely, Julie. So, I think this has been a stock picker's market. The fundamentals for the different mag seven companies are very different. So if you look at companies like Nvidia, the fundamentals are very strong and we expect them to get stronger as we get to the second half. Google and Apple on the other hand, their business models are under attack, right? So, you're seeing new entrants coming in, you're seeing new technologies, you're seeing people hiring their top talent. So, that is where you, they're more of like a show me story here where they would need to do something different than what they're currently doing. And Tesla is pretty much in the penalty box which with what's been going on on the political front. So, I would say across the board, there is different fundamentals driving each company, which is why it's very important to be an active investors picking specific stocks, which is what we do. I mean, it's interesting, Barbara, um, you know, I'm looking at the 10 largest companies in the S&P 500. And yeah, Tesla's in there, but so is Broadcom, for example. JP Morgan is 10th largest stock in the S&P 500. There you see the concentration in the S&P 500, which has been, um, rising again. So if you buy the S&P, you're getting heavy exposure to this, these kinds of companies. Do you agree with Ivana that you need to be kind of taking it case by case and doing some stock picking here? Yeah, I, I agree, I definitely agree in general on the stock picking. And the mag seven though, it's an interesting moniker because it really became established when what the companies all had in common. They were all mega cap, they were all leaders in their fields, and they were all in groundbreaking technologies, whether you're looking at Tesla's EVs or it's e-commerce, or it's social media, or it's search. And the question is how much some of the leadership has slipped. And I think, you know, I agree with Ivana and the name she mentioned. Alphabet is under attack in terms of their search business. They are, they do have good AI, but can they keep up with the chat GPTs of the world? You know, we've seen what's happened with Tesla. They are no longer the leader, they are losing share, and they've had delays in their in introducing new models, cheaper things. So they, that's definitely a question mark there. And Apple, Apple's revenues are flat, they've really missed out on the AI. Looks like they're trying to go after that and really upgrade it, but they've missed there. So that is a question, do those three still belong in the mag seven? But the mag seven really is a, a proxy for looking at, you know, these groundbreaking, um, mega cap names that just have sustainable growth for some time to come. Yeah, just to dig into a couple of these a little bit further here. Um, when it comes to Alphabet, there's been some speculation and reporting that chat GPT might come out with its own browser. Ivana, how much of a threat would that be to Google and Alphabet? Well, Julie, it's a real threat to, to Google. Specifically because they've been kind of dropping the ball on the browser enhancements, right? So, generative AI has now been around for two years. It should have been by now embedded into the Google browser where, uh, the browser itself learns about what are the types of things you're doing and can assist you as an AI agent on the side. And this is what we're seeing companies like perplexity bring to the market. They just launched a product, um, this weekend and similar with chat GPT. I think the browser itself can be a lot smarter. I'm sure that Google has something like this in the works, but the fact that they're not leading, uh, the market with, uh, their established market share is a little concerning. So I think this is a real threat and a time where there is a lot of disruption and there could be some changes. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
'Magnificent 7' check-in: Why these 3 names might not 'belong'
Spear Invest founder and chief investment officer Ivana Delevska joins BD8 Capital Partners CEO and chief investment officer Barbara Doran and Market Catalysts host Julie Hyman to check in on the "Magnificent Seven," noting the growing dissimilarities between stock names. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Wall Street hits record highs as Nvidia tops $4T and Trump ramps up trade tensions
Wall Street posted fresh all-time highs the week of July 7, powered by a relentless rally in Nvidia, which became the first company globally to surpass $4 trillion in market capitalization, igniting optimism across tech and AI stocks. The chipmaker extended its winning streak to a seventh consecutive week — and the 11th in the last 12 — nearly doubling its share price from early April lows in just over three months. The S&P 500 and Nasdaq saw record highs July 10. This surge propelled the collective market value of the so-called Magnificent Seven, which includes Apple, Microsoft, Amazon, Meta Platforms, Alphabet and Tesla, to a staggering $18.3 trillion. President Donald Trump reignited trade war concerns, announcing a 35% tariff on Canadian imports starting Aug. 1. He also floated 15% to 20% blanket tariffs on most other U.S. trading partners. Additionally, the administration unveiled 50% duties on copper and Brazilian goods, all set to kick in the same day. Meanwhile, Trump intensified his feud with the Federal Reserve. On July 9, he urged a 3-percentage-point rate cut, claiming high interest rates cost the U.S. $360 billion annually per point. More: Wall Street extends records, labor market shows resilience in June: This week in markets The central bank remains cautious. Minutes from the June 17-18 Federal Open Market Committee meeting revealed most officials see a rate cut as likely later this year. Still, Chicago Fed President Austan Goolsbee rejected the idea that policy should focus on debt servicing costs, reiterating the Fed's dual mandate: price stability and full employment. Airlines led the S&P 500 this past week. Delta Air Lines soared 12% July 10 after beating earnings and reaffirming its full-year profit forecast. Optimism spilled over to United Airlines, Southwest Airlines and American Airlines, as investors bet on a strong summer quarter for the travel sector. Bitcoin also broke records, climbing past $118,000. The iShares Bitcoin Trust — the world's largest crypto-related exchange traded fund — saw inflows in 12 of the past 13 weeks, reflecting renewed enthusiasm for the largest cryptocurrency amid rising institutional interest. Reuters contributed to this report. Benzinga is a financial news and data company headquartered in Detroit. This article originally appeared on Detroit Free Press: Wall Street hits record highs as Nvidia tops $4 trillion Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Beyond the "Magnificent Seven": My Top 2 Stocks to Become the Next Market Leaders
Taiwan Semiconductor and Visa could reach the size of the "Magnificent Seven" stocks. Visa's consistent growth can boost its earnings significantly higher in 10 years. Taiwan Semiconductor Manufacturing is a key beneficiary of the AI race. 10 stocks we like better than Taiwan Semiconductor Manufacturing › We all know about the "Magnificent Seven" stocks. These companies have generated huge gains for shareholders and now combine to have a market cap of around $15 trillion. It has been incredible to watch these technology giants take over the business world. But what about the next Magnificent Seven stocks? Here are my two top choices for stocks that will become market leaders over the next decade due to the sustained tailwinds that will drive underlying profit growth. In fact, one of these stocks already has a market cap of over $1 trillion, but I think it can get much larger over the next 10 years. The most prolific payments company in the world is Visa (NYSE: V). Last year, it processed $13.2 trillion in digital payments in 160 different currencies through 233.8 billion transactions. That is all in just one calendar year. There are now 4.8 billion Visa debit and credit cards in circulation, almost one for every person on earth. Immense scale gives Visa a competitive advantage via a network effect, which makes it almost impossible for upstarts to compete. Multiple tailwinds help Visa's revenue grow. First, it grows along with incomes, consumer spending, and business transactions around the globe. Second, it grows with the adoption of digital payments over physical cash. Third, it is boosted by inflation as the company earns a small fee for every dollar spent through its network -- so if items cost more, that is more revenue paid to Visa. These factors and Visa's competitive moat are why Visa's revenue is up 171% cumulatively in the past 10 years. These tailwinds should continue over the next 10 years. However, Visa is now looking for more ways to drive growth through what it calls valued-added services such as security, fraud protection, and analytics for merchant and banking partners. This segment grew revenue 22% year over year last quarter and can keep uplifting overall revenue growth. Visa has high profit margins of 66%. This is due to its asset-light business model and wide competitive advantage. Over the next 10 years, I expect Visa's profit margin to keep climbing higher as it gets more scale over its fixed cost base. When combined with the sustained economic tailwinds, I think the company's $25 billion in operating income can more than double 10 years from now to between $50 billion and $100 billion. This would put it in the same category of the Magnificent Seven stocks and will help Visa keep growing its market cap and stock returns for shareholders. Visa is a steady compounder, but some may say a boring business. If you look at its revenue chart, it basically goes up in a straight line. The same cannot be said of Taiwan Semiconductor Manufacturing (NYSE: TSM) -- otherwise known as TSMC -- and its explosive revenue potential in the next 10 years. TSMC is the premier manufacturer of advanced semiconductors in the world. Due to a large level of reinvestment in technological advances and its model of taking outsourced orders from computer chip designers as opposed to the traditional model of building and selling chips yourself, TSMC has expanded its lead and is now crowding out the field with its ability to produce cutting-edge computer chips at scale. These computer chips are vital for artificial intelligence (AI), which is leading TSMC customers such as Nvidia, Advanced Micro Devices, and Alphabet to greatly increase their orders. As usage of AI continues, TSMC's revenue should grow as well. We're still in the very early days of AI, giving TSMC at least 10 more years of growth ahead for this market segment. Over the past 10 years, the company's revenue has grown by 250% to $97 billion. I expect revenue to more than double over the next 10 years due to AI, growing to around $250 billion. Using TSMC's best-in-class profit margins for a manufacturer of around 45%, $250 billion in revenue could turn into over $100 billion in annual earnings 10 years from now. That would put it in the same class as the technology giants today. Today, TSMC has a market capitalization of $1.2 trillion. If it gets its yearly operating earnings above $100 billion, I expect investors to value it significantly higher, making it a great buy for your portfolio today. Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Alphabet. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Nvidia, Taiwan Semiconductor Manufacturing, and Visa. The Motley Fool has a disclosure policy. Beyond the "Magnificent Seven": My Top 2 Stocks to Become the Next Market Leaders was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
