Jim Cramer, host of CNBC’s Mad Money, shared his take on what truly drives the success of the “Magnificent 7” stocks. He argued that their strength doesn’t come from their technology or products, but from their ability to grow faster than the rest of the market.
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Cramer said investors focus on “growth that matters,” not on “the data center, accelerated computing, or even artificial intelligence.” He added that “growth is what the Magnificent Seven have in common and growth is what the market always loves.”
The Magnificent Seven — Amazon (AMZN), Alphabet (GOOGL), Meta (META), Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) — remain the biggest names in the market. Nvidia recently became the first chipmaker to reach a $5 trillion valuation, highlighting how investors continue to reward strong earnings and AI leadership.
Amazon’s Rally Highlights Cramer’s Point
Cramer highlighted Amazon as an example of how strong results can quickly boost these stocks. The shares jumped nearly 10% on Friday last week after the company posted solid third-quarter results. The gains were led by robust growth in its cloud computing unit, Amazon Web Services (AWS).
The stock gained another 4% on Monday after Amazon announced a $38 billion deal with OpenAI, pushing it to a new record high.
Despite their large size, Cramer said Amazon and its peers are “putting up some of the best growth out there.” He added that growth-focused stocks often hold up better when the economy slows, which helps explain why investors continue to favor the Magnificent Seven.
Which Magnificent 7 Stock Is the Best Pick?
Turning to Wall Street, out of the seven stocks mentioned above, Meta and Microsoft offer the highest upside potential among the Magnificent Seven, with analysts seeing 32% and 22% gains ahead, respectively. Both carry a Strong Buy rating.
Meanwhile, Nvidia also has a Strong Buy rating with about 15% upside, while Amazon and Alphabet show potential gains near 15% and 8%, respectively. Apple holds a Moderate Buy, and Tesla is rated Hold, with analysts expecting some near-term downside.
