Unhedged Magnificent 7 report
6 snips
Oct 31, 2024 
Join John Foley, a technology writer at the Financial Times, as he dives into the earnings of the Magnificent 7 stocks, including insights on heavyweights like Alphabet and Tesla. They discuss the contrasting strategies of AI leaders Apple and NVIDIA, and the competitive landscape in tech. Explore Tesla's expansion beyond cars and the evolving robo-taxi industry. They also analyze Reddit’s unique business model and reveal a cautious optimism in U.S. consumer sentiment amidst economic jitters.
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Contrasting Growth
- Nvidia and Apple, both worth $3.5 trillion, represent contrasting growth stories within the Magnificent Seven.
- Nvidia, the fastest-growing, benefits from the AI boom by selling essential hardware, while Apple, the slowest-growing, focuses on established product lines.
Nvidia's Position
- Nvidia's success is tied to its dominance in AI hardware, prompting concerns about the sustainability of its growth and potential competition.
- Nvidia's chips, originally designed for video games, were found to be ideal for AI calculations, contributing to the company's massive growth.
Microsoft's Resilience
- Microsoft's strong earnings, driven by cloud computing growth, were met with investor disappointment due to minor shortfalls in growth projections.
- Microsoft's deep entrenchment in corporate software makes it a resilient investment despite high valuations.