The Magnificent Seven — a term I coined earlier this year to track the market’s biggest tech winners — has certainly lived up to its vaunted name. Those seven mega-cap tech names are Apple, Google-parent Alphabet, Facebook and Instagram owner Meta Platforms, Microsoft, Amazon, Nvidia and Tesla. The first six are Club names. Call them our Mag6. Tesla is the only one we aren’t invested in — and with the exception of Tesla, which I believe will struggle next year as the bloom comes off the electric vehicle rose, we nailed them all for you, our members. I ran through each one of the six during Tuesday’s December Monthly Meeting . Now, I know how tempting it is to take profits in Apple . But that’s been the way it’s been ever since I said ‘own it, don’t trade it,’ which was about $150 ago in the stock price. I know people want to pigeonhole Apple by the iPhone numbers, and I don’t blame them as the company has truly emphasized that its growth will come from the phone and not services revenue. AAPL YTD mountain Apple YTD But in 2024 we are going to see that thesis challenged because I think the services revenue will begin to add up worldwide. Next year is supposed to be the year of the Vision Pro headset . But regardless, the services revenue stream next quarter will be bigger than everything but the iPhone put together, including Macs, Airpods and Watches — and then it will dawn on people why this stock reached more than $190 a share. On Thursday’s Homestretch, I told members not to sell Apple stock on the Watch patent infringement saga. GOOGL YTD mountain Alphabet YTD One Mag6 stock I’m most concerned about is Alphabet . We trimmed some because I had thought that Google Cloud Services would grow the way Amazon Web Services or Microsoft’s Azure has grown. But it failed to put up good numbers when it last reported. So why not just bolt? Because YouTube is crushing it, Google Search is very strong, I like their Bard artificial intelligence entry and I am impressed with its new Gemini AI model —an individual, non-enterprise, competitor to ChatGPT from Microsoft-backed Open AI. META YTD mountain Meta Platforms YTD Meta Platforms been quiet of late and quiet is real good. Instagram remains the best advertising buy in the internet space, followed only by TikTok, and after that, I think it’s Meta’s Reels. Two out of three isn’t bad. I would not want to be in TikTok’s shoes right now. China is very unpopular in America — and if anyone can make a case in Congress, a serious case, against TikTok, then Meta stock can take a giant leap higher. The problem, of course, is all the money that CEO Mark Zuckerberg is spending on the metaverse with no visible return. Here, I am trusting him to not blow endless billions on this project because he is a very good business person. I don’t think he will let it happen, certainly not in his decisive turn toward efficiency. AMZN YTD mountain Amazon YTD I wish X, formerly Twitter, had a bigger ad book because it is shedding advertising right and left, much of it going to Meta. Suffice it to say that Meta, along with Amazon , are tremendous places to advertise all sorts of consumer products with only Alphabet’s Google just behind. And, with AI, they will only get better at targeting consumers. MSFT YTD mountain Microsoft YTD Microsoft has got so much going for it — a personal computer refresh cycle, a giant installed business base, LinkedIn, and gaming now that it owns Activision Blizzard. But the most exciting thing is OpenAI — it owns a 49% stake in the startup — and I am certainly very glad that OpenAI CEO Sam Altman is still involved in Microsoft’s future. I went to hear Altman speak last week and he’s talking about creating a super-intelligent team of machines that will make companies so productive that they can’t resist using it. The way it will be manifested is in Microsoft’s AI assistant , Copilot. There are variable prices for Copilot, one for as little as $30 a month, but suffice it to say it’s a whole new revenue stream of great significance . NVDA YTD mountain Nvidia YTD Something crazy has happened to Nvidia stock because the stock languished after that last great quarter: It now sells at 25 times next year’s earnings. I have no idea how the premier growth company of our time can be this cheap. Maybe people are worried about Advanced Micro Devices ? They should be if AMD has the software built in as Nvidia does, but it doesn’t. Maybe they are worried about the price for its graphics cards? How can you live in an AI world without them? Maybe it is just part of some weird negative feedback loop where people think it is a fad? None of these is true. None. This is a company that could have years of hyper-growth ahead of it. I do not fear the loss of China. The customers who need these AI chips will get them from what should have gone to China and pay a great deal for them, perhaps more than the original price tags. Like Apple, I continue to want to own Nvidia, not trade it. (Jim Cramer’s Charitable Trust is long AAPL, MSFT, AMZN, META, GOOGL, NVDA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . 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An Apple corporate logo hangs above the front door of their store in the Garden State Plaza Mall on November 4, 2023, in Paramus, New Jersey.
Gary Hershorn | Corbis News | Getty Images
The Magnificent Seven — a term I coined earlier this year to track the market’s biggest tech winners — has certainly lived up to its vaunted name.
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