Midway through 2024: Identify Two Struggling "Magnificent Seven" Shares to Acquire Before Their Revival
The "Magnificent Seven" continues to feature some of the strongest businesses in the market, but a few notable members have faced challenges in the first half of 2024. Despite this, they present promising growth opportunities in the realm of artificial intelligence (AI).
The S&P 500 index has seen a 14.8% climb through June 26, yet the tech giants Apple and Tesla have shown mixed performance. Apple's shares, despite weak iPhone sales, have bounced back after the Worldwide Developers Conference, mainly due to its anticipated AI-powered features in iOS 18, such as text summarization and personalized search assistance from Siri. This update could drive device upgrades and boost iPhone revenue during the holiday season.
Tesla's shares, meanwhile, have dipped due to sluggish car demand and political uncertainties, but the recent shareholder vote in favor of CEO Elon Musk's pay package has lifted investor confidence. Tesla's strategic focus on robotaxi initiatives is significant, as AI-based services represent a substantial portion of the company's growing valuation.
1. Apple
Following the annual September iPhone event, Apple's stock has seen growth, surpassing the S&P 500. The latest AI-focused upgrades for Apple's operating system, including text summarization and Siri enhancements, have brought a renewed hope for investors. Apple's AI features, while free to download, will primarily benefit newer devices, driving potential upgrades and boosting iPhone sales during the holiday season.
Apple's iPhone 16 is also expected to release in a larger, 6.9-inch Pro Max version, further contributing to the growth trajectory. Wall Street analysts remain optimistic, upgrading their growth estimates from 3% to 7% for fiscal 2025 and even hinting at double-digit growth in the near future.
2. Tesla
Due to various factors like weakening car demand and the uncertainty surrounding Elon Musk's pay package, Tesla shares have almost halved from their all-time high. However, the recent shareholder vote indicates Tesla may be heading for a new phase. The company aims to unveil its Cybercab in August, opening up a massive market for AI-driven robotaxis.
Analysts predict that robotaxi services will contribute significantly to Tesla's revenue in the long term. This focus on AI and robotaxi initiatives positions Tesla to deliver consistent multi-year growth, with potential licensing agreements and critical roles in future robotaxi initiatives.
The growth of Tesla's robotaxi service could have a major impact on the company's profitability and valuation, making it a worthwhile investment. Tesla's unique position in autonomous driving and AI technologies, combined with its strategic focus on robotaxi services, ensures the company is well-positioned for future growth.
- Applying their investment strategies, many financial analysts have expressed interest in Apple's stock, considering its potential growth due to AI-powered features in its upcoming iOS 18 update and the anticipated launch of a larger iPhone 16 Pro Max.
- Tesla's recent shareholder vote in favor of Elon Musk's pay package has sparked optimism among investors, who believe the company's focus on AI-driven robotaxis, as demonstrated by the upcoming Cybercab, will significantly contribute to its revenue and long-term growth, making it an appealing investment opportunity in the realm of finance and investing.
