With the "Magnificent Seven" at 35% of the S&P 500 and the "Ten Titans" at 40%, Are AI Growth Stocks Poised for a Sell-Off or Is There Still Room to Run?

For over a decade, the simplest way to outperform the S&P 500 has been hiding in plain sight: mega cap growth stocks.In 2018, Apple became the first U.S. company to surpass $1 trillion in market capitalization. Fast forward, and Nvidia just surpassed $5 trillion in market value. Microsoft and Apple are hovering around $4 trillion. And Alphabet has more than doubled from its 52-week low and is now worth over $3 trillion.The "Magnificent Seven" is a term for seven growth-focused companies that caught on in 2023 as Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla soared to new heights. Investor excitement for artificial intelligence (AI) only accelerated the rally -- with the Magnificent Seven making up 35.4% of the S&P 500 at the time of this writing.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool