The so-called FAANG and Magnificent 7 stocks have had their moments in the market spotlight, but according to analyst Josh Peck at investment bank Raymond James, there's now a new portfolio that's about to attract attention and it's made up of three big AI-winning companies. He writes CNBC Friday night.
“MnM – Microsoft, Nvidia and Meta will lead the AI era,” Raymond James analyst wrote in a note to clients.
The analyst became particularly bullish on Meta after the technology company reported better-than-expected quarterly results and announced its first earnings.
Forget FAANG and Magnificent 7
Apple, Alphabet (Google's parent company), Amazon, Microsoft, Meta, Nvidia, and Tesla — known as the Magnificent 7 — have replaced the popular acronym FAANG, which originated about a decade ago. Fueled in part by the enthusiasm surrounding artificial intelligence (AI), Magnificent 7 had a banner year in 2023, lifting the entire stock market.
However, MnM is now the focus of investors interested in the technology.
Meta CEO Mark Zuckerberg said during an earnings call Thursday that the company will continue to invest in artificial intelligence and build out its computing infrastructure to handle larger workloads. The stock price has seen tremendous development in just a few hours, with an increase of 21.5 percent since its release.
Nvidia's share rose another 34 percent this year after an impressive rise of more than 220 percent last year. The company has been a clear promoter and favorite when it comes to artificial intelligence.
Microsoft achieved a 9.5 percent increase this year. Last month, the value of the giant technology company reached more than $3 trillion, snatching the title of the most valuable company in America from Apple.
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