“Magnificent Seven” in fashionable occasions is a repurposed time period of the Western film within the 60s of the identical title. As a substitute of gunmen, Magnificent Seven refers back to the mega-cap shares within the tech-heavy Nasdaq Composite Index within the U.S.

So as of market capitalization, as of April 11, 2024, they’re Microsoft, Apple, NVIDIA (NASDAQ:NVDA), Alphabet, Amazon.com, Meta Platforms (NASDAQ:META), and TESLA (NASDAQ: TSLA).

Solely Microsoft has a market cap of over US$3 trillion, and solely electrical carmaker Tesla is beneath US$1 trillion. If share costs will not be a consideration, one of the best “magnificent shares” to purchase in April are NVIDIA and Meta Platforms. Apart from the surging costs, their core companies have lengthy development runways.

Blockbuster funding

On Friday, February 23, 2024, NVIDIA’s market cap crossed US$2 trillion for the primary time throughout intraday buying and selling. On the shut of buying and selling on April 11, 2024, it was US$2.26 trillion. It’s the third publicly listed American firm, after Microsoft and Apple, to affix the unique $2 trillion membership.

NVDA trades at US$906.16 per share and is up 82.99% yr so far. The trailing one-year value return is 228.67%. However why make investments on this chip inventory? Many market analysts describe it as a blockbuster funding right this moment due to its phenomenal income and revenue development.

Within the fourth quarter (This fall) of fiscal 2024 (three months ending January 30, 2024), income and web earnings soared 265% and 491% to US$22.8 billion and US$12.84 billion versus This fall fiscal 2023 (GAAP). For the total fiscal yr, income and web earnings grew 126% and 581% yr over yr to US$60.92 billion and US$29.76 billion.

NVIDIA’s founder and chief govt officer (CEO) Jensen Huang mentioned in fiscal 2023 that synthetic intelligence (AI) is at an inflection level and is prepped for broad adoption in varied industries. Apart from the booming AI sector, NVIDIA was extremely profitable in graphics expertise and ray-tracing expertise in fiscal 2024.

The chipmaker is on the entrance and centre of the AI revolution. Final month, NVIDIA unveiled the Blackwell Platform to usher in a brand new period of computing. Its graphics processing unit structure options six transformative applied sciences for accelerated computing.

“Generative AI is the defining expertise of our time. Blackwell is the engine to energy this new industrial revolution. Working with essentially the most dynamic corporations on this planet, we are going to notice the promise of AI for each business,” mentioned Huang.

Superior inventory

Some analysts say Meta is an superior inventory. The US$1.33 trillion firm dominates the social media sector with Fb, Instagram, WhatsApp, Threads, and Messenger platforms. At $US523.16 per share, present buyers take pleasure in a 47.96% year-to-date acquire.

Excellent news got here on February 1, 2024, when META introduced that it will begin paying quarterly dividends (US$0.50 per share) and approved a US$50 billion buyback. In 2023, income and web earnings elevated 16% and 69% yr over yr to US$134.9 billion and US$39.1 billion.

Meta can be spending billions on AI initiatives and is a big participant within the generative AI area. It unveiled its new second-generation chip for AI workloads.

Keep away from taxes

NVIDIA and META’s development trajectories are unstoppable. Canadians investing within the two Magnificent Seven shares ought to maintain them of their Registered Retirement Financial savings Plans to keep away from the 15% withholding tax on international investments.