Nvidia (NASDAQ: NVDA) has been the darling of Wall Street for a while. The chip stock skyrocketed nearly 240% in 2023, and so far this year, its shares are up around 80%.
But analysts don’t expect this sizzling momentum to continue. The consensus price target for Nvidia is barely above its current share price. Here are three “Magnificent Seven” stocks Wall Street thinks will soar more than Nvidia over the next 12 months.
1. Apple
Apple (NASDAQ: AAPL) has been a laggard in 2024. It even lost the spot as the biggest company in the world, based on market cap, to Microsoft. However, analysts are more bullish about Apple than any other Magnificent Seven stock right now.
The average 12-month price target for Apple reflects an upside potential of over 9%. Of the 36 analysts surveyed by LSEG in April, 32 rate the stock as a buy or a strong buy. The others recommend holding the stock.
It might be surprising that Wall Street is so optimistic about Apple. The tech giant’s sales growth has slowed considerably, and its valuation is relatively high, with shares trading at a forward earnings multiple of nearly 26.
Analysts, though, could be anticipating a catalyst with Apple’s June developer conference. The company is widely expected to unveil its generative AI strategy at the event.
2. Amazon
Amazon (NASDAQ: AMZN) hasn’t delivered Nvidia’s jaw-dropping returns. However, the e-commerce and cloud services leader nonetheless pleased investors with a gain of 80% last year and a 20% jump so far this year.
Wall Street thinks Amazon can move even higher. The consensus price target for the stock is roughly 6.5% above the current share price. Forty-three of the 47 analysts surveyed by LSEG in April rate Amazon as a buy or a strong buy.
Generative AI continues to provide a major tailwind for Amazon Web Services (AWS), as customers like to run apps where their data is. Since AWS commands the leading market share among cloud platforms, it’s where many organizations are training and deploying their generative AI apps.
Amazon’s advertising business is also enjoying strong momentum. The company is using AI to boost the relevancy of the ads displayed to customers. It has also expanded advertising on Prime Video.
3. Alphabet
Shares of Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) jumped 58% in 2023. The stock is up over 10% year to date in 2024. Like Apple and Amazon, Alphabet still has more room to run in Wall Street’s view.
The average analyst’s 12-month price target is nearly 6% higher than the current price. Wall Street is overwhelmingly bullish about the tech stock, with 38 of the 43 analysts surveyed by LSEG in April rating Alphabet as a buy or a strong buy.
Alphabet’s Google unit has experienced a couple of embarrassments with its generative AI apps — first, with Bard last year, and more recently, with Gemini earlier this year. However, these missteps don’t seem to have concerned analysts very much. They’re more focused on the growth opportunities for Google Cloud and Google’s continued dominance in search. Some also have great long-term expectations for Alphabet’s Waymo self-driving car business.
Why Wall Street could be right
You can’t depend on Wall Street’s price targets. Even highly paid analysts focused on scrutinizing companies’ operations can’t predict the future with a high level of accuracy. However, I suspect Wall Street could be right about Apple, Amazon, and Alphabet. They could be right about Nvidia, too.
Nvidia could continue to soar higher, but competition is increasing. Any hiccup could cause the stock to tumble. I think Apple’s shares could jump on good news at the upcoming developer conference. Amazon and Alphabet should deliver solid growth in the next few quarters, largely due to the generative AI tailwinds.
Wall Street isn’t always right. In this case, though, I agree with the analysts’ takes on these Magnificent Seven stocks.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
*Stock Advisor returns as of April 4, 2024
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keith Speights has positions in Alphabet, Amazon, Apple, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Forget Nvidia: Here Are 3 “Magnificent Seven” Stocks Wall Street Thinks Will Soar More was originally published by The Motley Fool
EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel
