Wall Street Underestimates Magnificent Seven’s Growth Amid AI Boom

The Magnificent Seven—Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta Platforms, and Tesla—defied Wall Street's tempered expectations with a 30% earnings surge in Q3, excluding Meta's one-time tax charge. Analysts continue to lowball Big Tech's resilience, as AI-driven investments fuel outperformance.

Nvidia stands to benefit disproportionately from the AI arms race, though whispers of a bubble loom. Market expectations for the group have been revised upward sharply, reflecting renewed institutional confidence in tech's growth trajectory.

What appears as slowing growth at 18.4% masks underlying momentum—the cohort accelerated from Q2's 26% growth when adjusting for extraordinary items. This disconnect between perception and reality creates asymmetric opportunities for investors attuned to tech's fundamental drivers.