Part 7/11:
While Nvidia continues its meteoric rise, not all Magnificent 7 members are performing equally. For instance, Tesla, despite Elon Musk’s ambition to position it as an AI and technology company, still derives the bulk of its revenue from automobiles. Its foray into AI self-driving services remains a developing segment, and the challenges of automotive manufacturing continue to weigh on its valuation and growth prospects.
Similarly, Apple’s shares have lagged behind other big tech names despite integrating AI into its ecosystem through partnerships with OpenAI. A significant headwind for Apple is slowing iPhone sales—their primary revenue driver—which limits growth potential. While Apple’s AI initiatives are promising, their impact on earnings is yet to be fully realized.