This article discusses the “Magnificent Seven” stocks that have been driving the stock market to new heights, including Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta Platforms, and Tesla. The author predicts that two of these trillion-dollar market cap companies, Nvidia and Meta Platforms, may fall below this threshold by 2026.
For Nvidia, the author highlights the company’s dominance in AI-accelerated data centers and strong pricing power for its AI-GPUs. However, there are concerns about the potential bubble in AI technology and competitive pressures that could impact Nvidia’s market cap.
As for Meta Platforms, the author points out the company’s heavy reliance on advertising revenue and the potential impact of an economic downturn on its business. Additionally, the general priciness of the stock market and historical patterns of market corrections could also affect Meta’s market cap.
Despite these concerns, both Nvidia and Meta Platforms are seen as strong companies with growth potential. The author suggests that any significant pullback in their stock prices could present buying opportunities for investors.