The Magnificent 7 stocks have captivated investors over the past few months with their meteoric rise. These heavyweight tech names have propelled much of the market’s gains in recent years. But not all of the Magnificent 7 have delivered equally magnificent returns. While titans like Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA) continue charging ahead, stocks like Tesla (NASDAQ:TSLA) and Apple (NASDAQ:AAPL) have lagged.
Yet, even amidst their mixed trajectories, it’s worth taking a step back to consider where each of these influential stocks could be headed over the long-run. As they scale to new heights, momentum seems to be driving share prices more than fundamentals. That’s often a sign of overvaluation. Many believe a meaningful correction could hit some of these names in the coming months or weeks.
That said, I remain optimistic about the long-term outlook for these innovative companies. By 2030, they could each reach entirely new levels if they maintain dominance in their core markets. But how high could each stock realistically climb? Let’s take a look!
Apple (AAPL)
Apple has lagged behind its Magnificent 7 peers, and for good reason. This stalwart has not fully embraced the AI and data boom powering much of the recent gains in this group. With iPhone sales plateauing, Apple looks like a company stuck in the past to many investors. Losing its crown as the largest company to Microsoft only added insult to injury.
However, underneath the surface, Apple has quietly built a foundation for future growth. Its new Vision Pro VR headset, despite a hefty $3,499 starting price, has sold over 200,000 units as of the end of January, exceeding expectations. VR and AR remain early-stage markets, so the demand for this product has limits for now. But Apple is laying the groundwork in a potentially massive arena.
Meanwhile, Apple recently bested Q4 expectations, proving reports of its demise were premature. Critics argue the company is still too slow in pursuing AI. However, with Apple snapping up AI startups and making key hires, bears may soon be proven wrong. This sleeping giant could rejoin the party in the coming years. If Apple capitalizes on its strengths in hardware and combines it with AI expertise, the stock could eclipse $500 by 2030.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) remains a top Magnificent 7 buy. Yes, its premium valuation of 43-times earnings and 3-times sales raises eyebrows. But the company’s growth prospects justify these multiples. Analysts forecast Amazon’s earnings per share will triple from 2024 to 2033 amid double-digit revenue growth. I believe Amazon could even exceed these projections.
Several factors drive this potential. AWS maintains strong demand as cloud adoption rises. Additionally, Amazon’s AI investments are starting to bear fruit across its divisions. The company is firing on all cylinders – even making healthcare inroads via Amazon Pharmacy and the OneMedical acquisition. E-commerce leadership provides a wide moat. Developing in-house chips will also result in massive cost declines for the company’s chip needs in its AWS segment.
This is a business executing on all fronts. AI permeates every segment, from e-commerce to pharma. Amazon simply has too many levers to pull in too many growing markets to be stopped. I see AMZN stock reaching $750 or more by 2030, depending on how far into the future markets are willing to extrapolate this growth story.
Alphabet (GOOG)
Alphabet (NASDAQ:GOOG, GOOGL) has lagged behind its peers in capitalizing on AI, but it is catching up fast. Concerns have emerged as ChatGPT seemed poised to disrupt the company’s core Google search business. But neither ChatGPT nor Bing made a dent in Google’s supremacy. Meanwhile, Alphabet has kept its head down developing its own powerful AI.
Upgrading Bard with Gemini showcased Alphabet’s progress. Then came Gemma and Gemini Ultra, which the company claims is the most advanced model yet – even surpassing GPT-4. The validity of this claim is uncertain. But clearly, Alphabet has closed the AI gap. Google Cloud growth also underscores its momentum, with Q4 revenue up 26% to $9.2 billion.
Alphabet appears well-positioned for the AI age after weathering the ChatGPT threat. Google search retains its dominance, as the company expands into new technologies. With the company firing on all cylinders again, I see substantial upside ahead. If the company maintains momentum in cloud and AI, GOOG stock could fetch more than $400 per share by 2030. For a stock that’s lagged its peers, the future looks increasingly bright for Alphabet moving forward.
Meta Platforms (META)
I’ve long been bullish on Meta Platforms (NASDAQ:META) despite the stock market’s harsh treatment of the stock in 2022. Shares plunged below $100 as Meta invested heavily in its future vision. I pounded the table on META stock from $120 down to $90 before its sharp rebound.
Meta’s bets on AR and VR seem premature today. These technologies remain in their early stages of development, with limited near-term returns. But Meta’s core apps – Facebook, Instagram, WhatsApp – are cash cows. Yes, teenagers shun Facebook. However, social media networks are still seeing overall user growth. And notably, Instagram and WhatsApp have young demographics locked down.
As I wrote in October, Meta’s valuation looked fair based on 2023 estimates. Had Meta paid dividends over investing in the metaverse, it may have appealed more to long-term shareholders. Lo and behold, Meta recently initiated a dividend – making it more attractive to additional investor types.
My 2025 target of $400 proved conservative as shares hit $500 in early March. But I now believe $850 per share is achievable by 2030. That’s a modest projection, given Meta likely cools off after this breakout over fair value.
Microsoft (MSFT)
Microsoft has rocketed higher since Satya Nadella took over in 2014. Its AI investments via OpenAI sparked today’s hype. Indeed, Microsoft 365 remains essential for office productivity. By combining its software suite with AI, Microsoft is enabling more and more efficiency.
Its data center business is booming as well. Microsoft’s AI investments across its business units are paying dividends. This stalwart should stay vital for the foreseeable future, delivering further upside. A $1,200 target by 2030 seems reasonable given Microsoft’s expansive reach, as the company makes big bets in emerging fields like quantum computing.
Microsoft has its hands in every facet of tech. The company has defined past eras of computing and appears positioned to capitalize on the next wave of innovation too.
Nvidia (NVDA)
I’m bearish on Nvidia in the near-term. Semiconductors are cyclical, but investors get carried away and became downright euphoric during the recent AI-fueled rally. We saw huge gains this past year that I expect to reverse, much like the 2000 dot-com bubble.
Several headwinds face Nvidia investors. Many tech giants are developing their own AI chips rather than buying from Nvidia. With these firms also backing AI startups, Nvidia’s dominance in this space may wane. Moreover, rivals like Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD) are rolling out powerful new AI chips. It’s only a matter of time before they catch up.
Nvidia remains a momentum stock today. I believe long-term holders can still profit, but likely after weathering steep losses first. Even with these headwinds, $1,300 per share by 2030 seems achievable for NVDA stock.
Tesla (TSLA)
Tesla has lagged behind its Magnificent 7 peers recently. But don’t count this EV giant out over the long-term. The culprit driving this recent decline has been rising rates and tight money weighing on the EV sector. Once rates drop, Tesla and its peers should see growth reaccelerate.
Consider Tesla’s massive runway. Only 1% of vehicles are electric today. Tesla has no serious U.S. competitors. And while overseas rivals are gaining steam, they’re unlikely to ever dominate the U.S. market, with most such foreign competitors focusing on hybrids anyway. As the U.S. moves to electrify its fleet in the coming decades, Tesla remains the EV giant to beat.
Tesla also leads in batteries, charging infrastructure, and technology. It has carved an enviable niche that should propel growth once macro conditions improve.
The stock may tread water until rates decline. But with most of the company’s future growth still ahead, Tesla charging toward a $600+ level by 2030 seems reasonable.
On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
