Three stocks in the Magnificent Seven are hitting new all-time highs in Tuesday trading. Here's a look at what may be driving strength in several tech giants this week.
What To Know: Mega-cap market leaders Apple Inc (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT) and Amazon.com Inc (NASDAQ:AMZN) are reaching new heights in Tuesday's trading session.
The movement in the trio of big tech stocks appears to be due to continued optimism surrounding the rapid advancement of artificial intelligence and the efficiency gains that could result from the technology's rollout.
Apple shares lagged the broader market for most of the year until shares began perking up in anticipation of the company's annual Worldwide Developers Conference in early June. The conference did not disappoint, as analysts quickly raised price targets on Apple, expecting AI-related announcements out of WWDC to spark an earlier-than-expected iPhone upgrade cycle.
Microsoft, on the other hand, has traveled a more steady path to all-time highs. The stock has been pacing the broader market on AI enthusiasm since early 2023 when OpenAI's ChatGPT took the world by storm, adding users at an unprecedented rate. Microsoft maintains a $13-billion investment in OpenAI and continues to add AI-powered features across its devices.
Amazon crossed the $200 level in early trading Tuesday. The stock has been increasingly considered an AI beneficiary as investors start to understand Amazon's AI approach. Amazon Web Services CEO Matt Garman told CNBC this week the company is focused on building tools for the future of AI, which goes well beyond chatbots. Garman noted that Amazon is already thinking three to seven years ahead and has cost-cutting advantages given its experience managing expenses at scale.
To round out the rest of the Magnificent Seven, Meta and Alphabet are both within striking distance of all-time highs, while Nvidia is about 15% off its highs from last month. Tesla is ripping higher Tuesday, but remains well below its peak from 2021.
It's worth noting that Apple, Amazon and Microsoft were among the most-searched tickers on Benzinga Pro in the first half of 2024. Apple was the fourth most-searched stock, while Amazon and Microsoft came in 12th and 14th, respectively.
AAPL, MSFT, AMZN Price Action: At publication time, Apple shares were up 1.45% at $219.93, Microsoft shares were up 0.36% at $458.32 and Amazon shares were up 1.37% at $199.85, per Benzinga Pro.
- EXCLUSIVE: Top 10 Most Searched Tickers On Benzinga Pro In First Half 2024 – Where Do Nvidia, Tesla, Palantir, GameStop Rank?
Illustration was generated using artificial intelligence via Midjourney.