Tech Giants Expected to Continue Market Dominance in 2024
The Magnificent Seven mega-cap tech stocks, including Microsoft and Nvidia, have been the driving force behind record market gains in 2023. According to FactSet data, these tech giants are expected to maintain their leadership in 2024, with six of the seven projected to see double-digit growth.
While Tesla is the only exception with a projected negative return, analysts remain optimistic about the overall performance of the Magnificent Seven.
Last year, these companies saw success for various reasons, including their investments in AI and their strong moats and balance sheets. With the integration of AI across their products and services, some analysts believe that these tech giants will continue to see growth and monetization. There are also some who believe that analysts may be too conservative in their projections. They see these companies continuing to invest in AI and expect to see even more use cases and monetization in the future.
While there are some dedicated tech bulls, the overall sentiment among analysts is still positive, but more muted compared to last year. And while the forecast for the S&P 500 is also for modest gains, most analysts still believe that the mega-cap tech stocks will outperform the rest of the index.
The Magnificent Seven tech stocks are projected to maintain their dominance in the market in 2024.
