What are the "Magnificent Seven" tech stocks?

The "Magnificent Seven" refers to seven dominant technology companies that have been driving much of the stock market's growth: Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Alphabet/Google (GOOGL), Amazon (AMZN), Meta/Facebook (META), and Tesla (TSLA). These companies have enormous market influence due to their size, innovation in areas like AI and cloud computing, and their ability to shape entire industries.

Why focus on the suppliers of big tech companies?

The tech giants spend billions on infrastructure, components, and equipment to build their platforms. Their suppliers often experience significant growth as this spending increases. While the big tech names get most of the attention, the companies providing essential technologies like semiconductors, servers, and data center equipment can offer compelling investment opportunities as they directly benefit from tech expansion.

What is a market rally and why does it matter?

A market rally is a sustained period when stock prices rise significantly. The current rally, led by technology stocks, has pushed market indexes to record highs. These periods matter to investors because they can create wealth through rising stock values. Understanding which companies are driving a rally helps identify potential investment opportunities, both in the leaders and in companies benefiting from their growth.

What are GPUs and why are they important for AI?

GPUs (Graphics Processing Units) were originally designed for rendering video games, but their ability to perform many calculations simultaneously makes them ideal for training artificial intelligence systems. Companies like Nvidia have become essential to the AI revolution by designing specialized GPUs that accelerate AI development. As AI adoption grows across industries, the demand for these specialized chips continues to increase.

What is EUV lithography and why is it significant?

EUV (Extreme Ultraviolet) lithography is an advanced technology used to manufacture the most sophisticated semiconductor chips. It uses extremely short wavelength light to create incredibly tiny circuits on silicon wafers. ASML holds a monopoly on EUV lithography machines, making it a critical supplier for chipmakers like TSMC who produce advanced processors for companies like Apple and Nvidia. This technology is essential for continuing Moore's Law and enabling faster, more efficient computing.

17 handpicked stocks

Magnificent Seven Market Movers

The 'Magnificent Seven' tech giants are reshaping the economy and powering a historic market rally. This collection focuses on these influential companies and their essential suppliers who enable the AI and cloud computing revolution, creating opportunities throughout the tech ecosystem.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 30