Several of the “Magnificent Seven” stocks, namely Tesla (TSLA), Apple (AAPL), and Alphabet (GOOGL), have been trashed by investors for their recent lack of performance. Sock market bears have pointed to their underperformance as a clear sign that the market lacks solid footing. However, two of those three names were in the news this week with potential catalysts to help them catch up, writes Tom Bruni, head of market research at The Daily Rip by Stocktwits.
It was reported that Apple is in talks to license Google’s suite of generative Artificial Intelligence (AI) tools, called Gemini, for future iPhones. With Apple’s next big iPhone update (iOS 18) expected during its Worldwide Developers Conference, investors and other stakeholders expect the company to outline a comprehensive plan for capitalizing on this new “gold rush.”
The news boosted Alphabet shares back into positive territory on the day, leaving just Apple and Tesla in the red. With AI providing a potential catalyst, traders are looking for further gains from these stocks in the days and weeks ahead. We’ll have to see if they get it.
Nvidia (NVDA) was also in the news because of its AI event. One thing that caught people’s attention was the robots CEO Jensen Huang brought on stage during the presentation. Call me crazy, but anytime a company starts incorporating robots into their presentations, a part of me definitely feels like they’re trying too hard.
Maybe Nvidia will be the company that overpromises and actually delivers, but it does feel like things have gotten a bit ahead of themselves lately. And honestly, it seems like the market might agree with that perspective for right now. NVDA shares were down about 1% after the event, so we’ll have to see how things develop in the days ahead.
