2 "Magnificent Seven" Stocks Billionaires Are Buying

In the ever-evolving landscape of the stock market, certain companies consistently capture the attention of investors, including billionaires. These companies, often referred to as the "Magnificent Seven," have demonstrated remarkable growth and resilience. In this article, we will explore two of these stocks that have caught the eye of billionaire investors: Tesla (TSLA) and Nvidia (NVDA).



Tesla (TSLA): The Electric Vehicle Revolution

Tesla, the leading electric vehicle (EV) manufacturer, has been a darling of billionaire investors for years. The company's innovative approach to sustainable transportation, coupled with its strong financial performance, has made it an attractive investment option. In 2024, Tesla's stock price surged by 62%, nearly triple the S&P 500's performance and more than double the gains seen in the Nasdaq Composite.

Several factors contribute to Tesla's appeal:

1. U.S. Presidential Election Outcome: Tesla CEO Elon Musk's relationship with President-elect Donald Trump is expected to be a significant tailwind for the company's future, particularly in the areas of autonomous driving and robotaxi plans. This catalyst fueled Tesla's stock rebound in late 2024.
2. Strong Fundamentals: Tesla's earnings per share (EPS) grew by 0.6% in 2024, despite the challenges faced by the broader market. The company's revenue expansion, driven by increased sales of its electric vehicles, has also been a key factor in its success.



Nvidia (NVDA): The AI and Gaming Powerhouse

Nvidia, the semiconductor giant, has been another standout performer among the Magnificent Seven. The company's stock price climbed 171% in 2024, driven by strong demand for its AI accelerators and gaming products. Nvidia's earnings per share (EPS) grew by a staggering 168% in the same year, reflecting the company's impressive financial performance.

Several factors contribute to Nvidia's appeal:

1. New GPU Lineup (Blackwell): Nvidia's newest GPU lineup, Blackwell, is expected to drive significant demand and growth for the company in 2025. Industry analysts anticipate surging demand for Nvidia's new architecture, which could lead to another milestone year for the semiconductor leader.
2. Strong Fundamentals: Nvidia's revenue expansion, driven by increased sales of its AI and gaming products, has been a key factor in its success. The company's earnings per share (EPS) grew by 168% in 2024, reflecting its strong financial performance.



In conclusion, the Magnificent Seven stocks, including Tesla and Nvidia, have demonstrated remarkable growth and resilience in the face of market challenges. Their exposure to emerging technologies, such as AI and cloud computing, has driven their long-term growth potential. As billionaire investors continue to seek out attractive investment opportunities, these two stocks remain at the forefront of their consideration.