The Magnificent Seven just lost Tesla and Apple - these 2 surging tech stocks are taking over fast
Magnificent Seven
" tech stocks,
Tesla
and
Apple
might be losing their spots to two rising stars:
Oracle and Broadcom
, as per a report. The shift's recommendation comes from
Vimal Patel
, manager of the Columbia Seligman Global Technology Fund, a fund that has outperformed its peers by six percentage points annually over the past five years, according to a report by Morningstar Direct.
Patel, who holds an advanced degree in electrical engineering and has a background in the tech industry, is calling for an upgrade to the traditional list of mega-cap tech names, replacing Tesla and Apple with two companies he believes are better positioned for future growth, as per a report by Market Watch.
Why Tesla should get dropped
Tesla has had an impressive run, but Patel thinks it's time to take a step back, according to the report. He points to growing competition in the electric vehicle space, especially from China, which is forcing Tesla into price cuts and squeezing margins, as per Market Watch report.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
20 Pieces of Clothing you Can be Too Old for
womentales.com
Learn More
Undo
Patel said that, 'It's just a pricing war out there,' as quoted in the report. He's also skeptical about Tesla's long-term bets on robotaxis and humanoid robots, saying, 'We don't buy hopes and dreams,' as quoted by Market Watch.
ALSO READ:
Billionaires ditch Nvidia for this AI stock that's soared 2,000% since 2023
Live Events
Apple's struggles with innovation and risk
Apple remains popular with consumers, but Patel sees three key challenges. First, iPhone upgrade fatigue as he said, 'We have been waiting for an iPhone growth cycle, and we have not seen it,' as quoted in the report. Second, Apple's AI offerings haven't impressed and third, the company's exposure to China puts it at serious geopolitical risk, according to the Market Watch report.
Patel said that, 'Of all the Mag 7, they are the most exposed,' adding, 'They are not in a good position to navigate the tariff situation,' as quoted in the report.
ALSO READ:
Trump blasted for embarrassing typo in tariff letter — misgenders foreign leader
Oracle: the next cloud giant?
Oracle has quietly become a strong competitor in the cloud space, especially through its
Oracle Cloud Infrastructure
(OCI) business, according to the report. Once known mostly for databases, the company is now gaining ground against Amazon Web Services, Microsoft Azure, and Google Cloud, as reported by Market Watch.
Patel said, 'They are becoming the next hyperscaler,' adding, "They are starting to show their chops,' as quoted in the report.
In its most recent quarter,
Oracle
reported cloud revenue of $6.7 billion, up 27%, and total sales of $15.9 billion, an 11% increase, as reported by Market Watch. CEO Safra Catz expects cloud revenue to grow another 40% in the next year, as per the report.
Oracle
is also making strides in AI through Oracle 23 AI, which allows companies to run large language models directly on their private data, according to Market Watch.
ALSO READ:
VantageScore 4.0 just got a major boost - what it means for your credit and loans
Broadcom is quietly powering the AI economy
While Nvidia has dominated headlines, Broadcom is helping some of the world's biggest tech companies build custom AI chips, a cost-saving move gaining popularity among hyperscalers like Amazon, Google, and Microsoft, as reorted by Market Watch.
Patel explained that, 'Instead of spending a ton of money on
Nvidia chips
, hyperscalers create their own chips made by Broadcom. This reduces costs and power requirements dramatically,' as quoted in the report.
Broadcom's AI chip revenue rose 46% to $4.4 billion last quarter, helping total revenue reach $15 billion, as per the report. The company expects AI chip sales to climb to $5.1 billion in the next quarter, a 60% year-over-year jump, reported Market Watch. Broadcom is also a key supplier of networking and wireless chips, making it a crucial player in several areas of tech infrastructure, according to the Market Watch report.
FAQs
Who is recommending this change to the Magnificent Seven list?
Vimal Patel, a seasoned tech investor and manager of the Columbia Seligman Global Technology Fund, which has outperformed its peers for years, as per the Market Watch report.
Should I consider investing in Oracle or Broadcom now?
While Patel sees long-term promise in both, always consider your risk tolerance and investment goals before making portfolio changes.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
4 hours ago
- Business Standard
Global EV majors Tesla, VinFast, Kia set for India face-off on Tuesday
Global EV majors Tesla, VinFast and Kia to launch models, announce prices and open bookings on the same day, intensifying India's electric vehicle battle premium Shine Jacob Chennai Listen to This Article This Tuesday, India's electric vehicle (EV) landscape is set to witness some big-ticket moves. Three multinational EV majors — Tesla, VinFast, and Kia — will unveil their products, announce pricing, and open pre-bookings. While American major Tesla will showcase its Model Y, Vietnamese rival VinFast will drive in the VF6 and VF7, and South Korea's Kia will offer its much-anticipated Carens Clavis EV. The rising interest from global majors comes as EV penetration in the passenger car segment jumped to 4.4 per cent in June 2025, up from around 2.5 per cent year-on-year, driven by government subsidies, according to the
Hindustan Times
5 hours ago
- Hindustan Times
Elon Musk Is Back at Work and Burning Through Executives
The sun is shining bright again in the Elon Musk business empire. Don't get burned. The billionaire entrepreneur may still be pining for a political revolution with talk of starting his own third party to punish spendthrift Republicans, but recent high-profile departures at his companies underscore that the Boss is back. 'Thank you for your contributions,' Musk—who has a way with goodbyes—told his outgoing chief executive at X, Linda Yaccarino, on Wednesday. She announced her departure after two years on the hot seat, running the billionaire's social-media platform. Yaccarino's role was largely about trying to revive advertising for a guy who seems allergic to the art of the sale. Just days earlier, it was revealed that Omead Afshar, who was heading sales and manufacturing for Tesla in North America and Europe, had left Musk's electric-car company. Both departures reflect an old saying among Musk alum: to survive with the mercurial leader is to avoid flying too close to the sun. Musk being the sun. Finding shade was easier when his Department of Government Efficiency effort was churning 120 hours a week for the Trump administration. That came to an end for him in late May. Now Musk is burning hot (if not always 100% focused). The latest executive departures also underscore Musk's complicated relationship with the sales functions at his companies. He's the ultimate salesman of the future vision. But he tends to churn through sales leaders responsible for moving today's inventories—whether that's ad spots or electric sedans. And, these days, Musk is acting like the AI chatbots and cars will sell themselves. That Yaccarino stayed as long as she did beat the guesses of some Madison Avenue insiders. They had privately speculated she wouldn't last long under Musk. She surprised the industry by leaving her cushy gig at NBCUniversal in 2023. Together, she and Musk were seen as a real-life Odd Couple. Musk has long shown disdain for traditional sales methods, arguing over the years that quality products should sell themselves. Meanwhile, Yaccarino was Ms. Sales—whether it was her polished image or pitch that Twitter-turned-X was a safe place for brands. That last part could be hard to swallow. Musk's own actions could promote contentious content on the platform and his 'Go F— Yourself' ways could be off-putting to big brands worried about negative associations. This past week, 'MechaHitler' trended on X after Musk's chatbot, Grok, generated antisemitic content. That only renewed concerns about safeguards. When Musk took over Twitter, he said he didn't want to be CEO. It was a common refrain from him over the years, something he has said about Tesla where he has led the company since taking the reins in 2008 during financial difficulties. He has often complained that the company can't find somebody to run things for him, unlike at his rocket company, SpaceX. There, he has long had a strong No. 2 to handle the parts of the business that interest him less—like sales. Despite his objections to being X CEO, he clearly wanted to be the Boss. This point was driven home when his xAI startup acquired X earlier this year. Yaccarino's role was largely diminished as part of a company more broadly aiming to use Grok to compete against AI rivals such as OpenAI and Alphabet. Over the years, I've often heard insiders talk about how it has grown increasingly hard to recruit seasoned business leaders to work for Musk because of his reputation for burning through people. During one stretch at Tesla, the company saw more than 50 vice presidents or higher depart in a relatively short period. In some cases, a high-profile hire would join only to quietly leave a few weeks later. Some of the churn was natural attrition as options vested. Some of it was Musk growing tired of people. Some of it was employees growing tired of his grueling pace. In 2023, amid investor concerns that Musk was too distracted from Tesla's day-to-day with his then-recent purchase of Twitter, he presided over an unusual investor meeting. Sixteen executives flanked him on stage to discuss their areas of the car company. It was as if Musk was trying to show that Tesla was more than just him. 'We obviously got significant bench strength here,' Musk said at the time. Flash forward two years, many are gone. That includes the then-CFO, who was seen as a potential replacement for Musk if the board needed it. These days, it's rare for Tesla to highlight its bench far beyond Musk. And again, Tesla, and now X, are down key deputies when Musk faces major challenges across his companies. Tesla recently launched a limited robotaxi service amid a car-sales slump. A few weeks ago, Musk was in a three-hour-plus meeting that ran well past midnight at his brain-implant startup, Neuralink, when his SpaceX rocket blew up, according to biographer Ashlee Vance, who was with him. 'Meeting ended,' Vance posted on X. 'I assume that's when he learned about it. And then … he went back to work.' Hours after Yaccarino's departure announcement Wednesday, Musk was leaning into the wonky side of AI to sell xAI's newest model, Grok 4. During a near hourlong reveal streamed online, Musk talked about the AI's advanced book smarts and practical applications. One demonstration included a voice AI with an English accent being asked to write and sing an opera about Diet Coke, Musk's preferred beverage: 'Oh, Diet Coke Thou elixir divine With bubbles that dance In a sparkling line Thy crisp, cool kiss On lips so fine …' As Musk sat on the dark stage flanked by young xAI employees dressed in black T-shirts, he wound things down, asking: 'Anything you guys want to say?' One engineer, near Musk, quickly applied a sort of sunscreen, blurting out: 'It's a good model, sir.' The UV index is high. Write to Tim Higgins at
Hindustan Times
6 hours ago
- Hindustan Times
Trump Is Taking Credit for New U.S. Factories. Does He Deserve It?
The White House has an explanation for the nearly $2 trillion of manufacturing-related projects announced since the start of the year. It's the Trump Effect. 'They're really coming in fast,' Trump said at an April event with business leaders. 'Some of them don't bother calling us. Some of them don't even want meetings. They just start their plants and start their factories.' The White House maintains a running list of U.S.-based investments it says have been spurred by Trump's commitment to revitalizing American industry. Nearly 80 projects are included, from factories to data centers to a liquefied natural gas facility. The Wall Street Journal examined the manufacturing-related projects on the administration's list that involved investments of at least $1 billion. Of those 33 projects, some involve R&D, equipment and machinery investments that are in line with the companies' typical spending. Others were in the works well before Trump was elected. A White House spokesman said Trump has been 'a critical catalyst converting hypothetical discussions into firm investment commitments.' Drones, AI and ketchup Defense technology company Anduril Industries, founded by Trump supporter Palmer Luckey, said last August that it had raised more than $1 billion to build a plant that will make autonomous weapons systems. Just before Trump's January inauguration, Anduril said it would put the factory in Ohio. The White House later added the project to its list of manufacturing wins. An Anduril spokeswoman said while planning for the factory preceded Trump's presidency, he helped to build momentum around the project. 'The Trump administration is creating conditions for innovation and manufacturing to thrive,' she said. In February, Apple said it would spend $500 billion in the U.S. over the next four years to support efforts in artificial intelligence, silicon engineering and skills development for students and workers. Apple's spending pledge, which later made the White House list, is roughly on track with its recent investments. The company has spent about $1.1 trillion over the past four fiscal years on operating expenses and capital expenditures, and analysts project about $1.3 trillion in spending over the next four years. About 40% of Apple's revenue comes from the Americas, and a similar proportion of projected expenses would equal a little over $500 billion. 'Some of that's just existing R&D that would have been spent anyway,' said William Kerwin, senior equity analyst at Morningstar. Apple didn't respond to a request for comment. Ketchup and macaroni maker Kraft Heinz in May told Reuters it would spend $3 billion to upgrade its U.S. plants, seeking efficiency gains that could help offset Trump's tariffs. The company, which normally invests $1 billion a year on capital projects, said the investment would stretch over five years but wouldn't result in new jobs beyond construction work. The White House a day later included the company's planned investment among a number of corporate announcements that it said showed that Trump's policies are paying off. Doubling down on Trump Some companies on the White House list have name-checked Trump in their announcements. Taiwan-based GlobalWafers, which makes the silicon wafers used in semiconductor manufacturing, said in May it intends to spend $4 billion to expand a just-opened, $3.5 billion Texas factory 'in alignment with market growth and Trump administration priorities.' Brent Omdahl, the company's senior vice president for government affairs, said the Trump administration has simplified reporting requirements and trimmed other red tape around a $406 million Chips Act grant awarded during former President Joe Biden's tenure. 'This is saving us time and money,' Omdahl said. Kraft Heinz, which normally invests $1 billion a year on capital projects, said it would spend $3 billion to upgrade its U.S. plants. Pratt Industries, a packaging manufacturer owned by Trump backer Anthony Pratt, said at a White House event in April that it would invest $5 billion and create 5,000 U.S. manufacturing jobs to support Trump's call to reindustrialize America. In 2022, when Biden was president, Pratt pledged to invest $5 billion, spread over 10 years. Since then, according to the company's website, it has opened four new plants, spending between $120 million and $700 million on each. The April commitment, Pratt said, comes on top of its earlier pledge. 'Because of our confidence in President Trump, we're doubling down on the investment, in the same period of time,' a company spokesman said. Chipping in In April last year, semiconductor company Micron Technology said it received $6.1 billion in Chips Act funding to support its roughly $50 billion investment in manufacturing facilities in New York and Idaho, part of a potential $125 billion investment over the next two decades. The company thanked the Biden administration for supporting investments that 'will ensure U.S. semiconductor competitiveness for generations to come.' This June, Micron announced an expanded U.S. investment commitment of approximately $200 billion. That included $30 billion in manufacturing investment beyond its earlier plans, along with $50 billion for research and development. The company thanked President Trump for his support. The Trump administration added Micron's $200 billion total to its list. The company declined to comment further. Chip maker Taiwan Semiconductor Manufacturing Co. last year received $6.6 billion in funding from the Chips Act. In March, TSMC announced plans to invest an extra $100 billion in chip-manufacturing plants in the U.S. over the coming years, which the White House added to its list. The company made the move based on the needs of customers, who value geographic flexibility, Chief Executive C.C. Wei said in an April earnings call. He said that the investment came with 'strong collaboration and support from our leading U.S. customers and the U.S. federal, state and city government.' Solar winds Trump is far from the first politician to claim credit for economic gains and corporate investment that already were under way. Biden touted creating millions of jobs during his administration, though the economy also benefited from the U.S.'s postpandemic rebound and stimulus efforts passed in Trump's first term. One project highlighted by the Trump White House could be challenged by the president's policies. Glass manufacturer Corning this year said it would increase its investment to $1.5 billion in a Michigan factory that will make solar components. Wendell Weeks, Corning's CEO, said during the April announcement that the expansion was a response to increasing demand for U.S.-made solar products. The White House added the project to its list. Trump's recently passed budget bill will end tax credits for residential and large-scale solar projects. Analyst Paula Mints said the bill and a subsequent executive order targeting green energy will add economic risks for solar manufacturers. Corning said solar remains one of the fastest-growing energy sources, and that 80% of the new factory's capacity is spoken for through 2030. Write to John Keilman at and Harriet Torry at
