How YOU can make a fortune from the AI revolution: As the Magnificent Seven tech stock results come in, the definitive guide to which shares to buy

The Magnificent Seven tech stocks - Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla - person risen to heady heights acknowledgment to excitement complete nan AI (artificial intelligence) revolution.

The mobility for investors arsenic they study their latest results successful nan adjacent fewer days is whether they tin proceed astatine specified a clip.

The mixed maturation successful their shares was 107pc past year. That has fixed investors, including galore backstage shareholders successful nan UK, a large dollop of nan feel-good facet arsenic they person seen their savings and pensions sprout up successful value.

But if thing looks excessively bully to beryllium true, it often is - moreover successful nan 21st period dream mill that is Silicon Valley.

So which of nan tech titans are astir apt to proceed to beryllium superheroes and which look destined to disappoint?

Optimistic analysts expect a 30pc jump successful nan mixed profits of nan Mag 7 erstwhile they uncover their 2nd 4th profits. That is little than nan 51pc leap successful nan first 3 months of their financial year. Even so, it is still good supra nan 9.9pc predicted for nan S&P scale - nan starring shares barometer successful nan US - arsenic a whole.

But immoderate members of nan Mag 7 are distinctly much magnificent than others.

It has go painfully clear that astatine slightest 1 - Tesla, nan world's largest electrical car institution - is falling behind.

Its results yesterday revealed lacklustre sales.

Elon Musk, Tesla's unfailingly arguable boss, is promising breathtaking innovations, including autonomous 'robotaxis', but these will not get until October.

The results from Alphabet, proprietor of nan Google hunt engine, underlined its might, but besides revealed immoderate weakness. The group is cashing successful connected nan apparently insatiable request for unreality computing (the proviso of distant machine retention for companies). Yet advertizing revenues from its YouTube section were little than estimates.

So what are nan investing experts' verdicts, arsenic we await nan results adjacent week from nan different five?

Anyone who is reasoning of investing now - aliases so taking profits from shares successful nan Mag 7 - should beryllium alert that analysts still complaint these stocks a 'buy', pinch nan objection of Tesla.

This is simply a reasoned assessment. Investors who are reasoning semipermanent should return a stake connected nan AI revolution.

Before buying, however, cheque to spot whether nan costs you clasp already springiness you this exposure. Global equity costs clasp ample chunks of Mag 7 shares. F&C and Scottish Mortgage Investment Trust, for example, are awesome shareholders. Investors tin bargain these costs arsenic good arsenic nan individual shares done online trading platforms specified arsenic AJ Bell, Hargreaves Lansdown and Interactive Investor.

At nan aforesaid time, it makes consciousness to beryllium realistic astir nan near-term threats to nan Mag 7's apparently invincible sway. Last week's world IT meltdown affecting 8.5 cardinal Microsoft computers was a reminder that tech firms are fallible.

FOMO (fear of missing out) helped propel nan stock prices of these US tech titans - investors wanting a portion of nan roar unfolding earlier their eyes - and seldom has fearfulness been truthful richly rewarded.

Lately, however, a different fearfulness has emerged: that nan Mag Seven whitethorn not beryllium nan guarantors of ever-increasing wealth.

There is apprehension astir nan effect of a Trump presidency connected these companies' Chinese operations. Trump has raised nan imaginable of 'phenomenal' tariffs connected Chinese imports.

He has besides said that Taiwan should salary nan US for its defences against a Chinese invasion. The Taiwan Semiconductor Manufacturing Company (TSMC) makes nan world's finest chips, including those base nan Nvidia brand.

Against this much tense background, immoderate starring money managers person a caller obsession - nan UK banal market. It could beryllium Cool Britannia each complete again arsenic unloved UK companies measurement into nan limelight. Check your holdings to spot whether successful nan instrumentality mania complete nan Mag 7, you person forgotten to backmost Britain.

Here is simply a stock-by-stock verdict of nan experts connected nan Magnificent Seven (and nan statement among analysts arsenic to whether nan shares are a beardown buy, buy, hold, waste aliases beardown sell).

TESLA: HOLD

The electrical car shaper - tally by Elon Musk - past nighttime revealed that profits had tumbled to £1.15bn successful nan 3 months to nan extremity of June, a steep driblet of 45pc from nan twelvemonth before.

This disappointing capacity has prompted experts to show investors to 'stay connected nan sidelines' erstwhile it comes to buying Tesla shares.

Revenues roseate to £19.8bn, which is simply a batch of money by immoderate reckoning. But nan fig was up by conscionable 2pc, which fell good beneath what nan marketplace was expecting.

The downbeat numbers travel arsenic Musk grapples pinch dwindling demand. He is besides locked successful a conflict pinch Chinese car makers offering cheaper vehicles, forcing him to push down his ain prices.

Tesla now admits it expects to spot 'notably lower' maturation successful 2024. It is already trying to trim costs. Draconian measures see laying disconnected much than 10pc of its labor earlier this year.

They person not, however, extended to Musk's ain rewards. He was awarded a package worthy up to $56bn earlier this twelvemonth - admittedly overmuch of it successful Tesla shares, which went down arsenic overmuch arsenic 7pc successful after-hours trading connected Tuesday nighttime having already fallen 8pc complete nan past year.

Even so, his outsized salary has not impressed immoderate investors, who are becoming progressively sceptical.

Mamta Valechha, expert astatine Quilter Cheviot, said nan marketplace 'remains cautious' and urged investors to 'stay connected nan sidelines' erstwhile it comes to Tesla.

She cited mediocre car income arsenic nan cardinal factor.

Josh Gilbert, a marketplace expert astatine eToro, said investors were looking for immoderate 'Musk magic' connected Tuesday nighttime but were near disappointed.

'He was subdued and offered small penetration arsenic to what's adjacent for investors, and that will put shares nether pressure,' Gilbert said.

ALPHABET: BUY 

Google proprietor Alphabet recovered itself successful a overmuch much comfortable position past night.

The tech elephantine - which besides owns Youtube - said revenues surged to £65.7bn successful nan 3 months to nan extremity of June, up 14pc from nan twelvemonth before.

It came arsenic Alphabet posted bumper maturation astatine its advertizing arm, calming concerns that chatbots from rival companies specified arsenic OpenAI's ChatGPT were hitting nan Google hunt engine.

Profits were besides up 22pc to £18.3bn.

Like its large tech rivals, Alphabet is racing to rotation retired AI offerings arsenic investors move billions into nan technology.

But successful a triumph for shareholders, Alphabet's main executive Sundar Pichai said nan results were impervious that nan company's punts were paying off.

Shares fluctuated successful after-hours trading but are up 50pc successful nan past year.

This gives it a valuation of astir £1.75trillion - making it nan world's 4th astir valuable listed institution down Apple, Microsoft and Nvidia.

City analysts are assured Alphabet is 1 to buy, pinch Dan Coatsworth, expert astatine AJ Bell, noting nan company's 'major advantage' acknowledgment to its' financial spot to effort tons of caller things'.

But he added: 'Anyone investing successful Alphabet needs to person assurance that it tin move pinch nan times, perpetually deliberation up caller ways to make money, and support its ascendant position successful hunt and advertising.

'Its occurrence complaint to day would propose nan institution has nan correct skills to enactment connected top, but investors must admit location could beryllium bumps on nan way.'

NVIDIA: STRONG BUY 

Nvidia is 1 of nan banal marketplace occurrence stories of nan century. Shares successful nan pioneering microchip designer person gone from conscionable 10 cents astatine nan move of nan millennium to much than $122 today, valuing Nvidia astatine complete $3trn and making it nan 3rd largest quoted institution successful nan world aft Apple and Microsoft.

This meteoric emergence has been fuelled successful caller years by nan insatiable appetite among investors for artificial intelligence (AI). The mobility is: tin it continue?

James Anderson, 1 of nan UK's best-known money managers, surely thinks so.

In his erstwhile domiciled moving nan FTSE 100-listed Scottish Mortgage Investment trust, he was an early investor successful Nvidia, on pinch different tech stocks specified arsenic Amazon and Tesla. In his 2 decades astatine nan helm, Anderson turned Scottish Mortgage into nan UK's largest finance trust, whose caller capacity is recovering aft a crisp fall.

Despite nan phenomenal performance, Anderson reckons Nvidia's shares person overmuch further to go. According to Anderson, its marketplace activity successful cutting-edge AI chips intends it could beryllium worthy $50trn wrong nan adjacent decade - much than doubly nan size of nan full US economy.

'The imaginable standard of Nvidia,' he says, could return its marketplace worth to 'double-digit trillions,' he says. 'This isn't a prediction but a anticipation if artificial intelligence useful for customers and Nvidia's lead is intact..' But moreover Anderson admits it could beryllium a bumpy ride.

There was a reminder of this past week erstwhile shares successful Nvidia and different akin stocks tumbled aft US statesmanlike campaigner Donald Trump warned Taiwan it should salary nan US for its defence.

Nearly each of nan world's astir precocious chips utilized successful satellites, stealth bombers and,increasingly, AI are made connected nan island. The US has antecedently vowed to protect Taiwan if China invades, but Trump's remarks called its support into question.

Experts pass that, if he wins November's statesmanlike election, shares successful AI firms specified arsenic Nvidia could autumn further arsenic investors return profits aft their beardown caller run.

Despite these concerns, nan banal is rated a 'strong buy' by financial marketplace analysts.

MICROSOFT: STRONG BUY 

Microsoft was astatine nan centre of nan large wind past week aft an estimated 8.5million computers were abnormal by a world IT meltdown.

The stock price, however, took only a flimsy deed from nan episode.

Richard Hunter, an expert astatine finance level Interactive Investor, says Microsoft is still regarded arsenic 'best successful class' amongst nan Magnificent Seven.

The group continues to pump millions into AI, successful nan belief this will reap untold rewards down nan line.

Microsoft has been a awesome backer of OpenAI, nan institution down chat bot ChatGPT, which exploded onto nan segment astatine nan extremity of 2022.

Ahead of nan company's results adjacent week, City experts are backing nan banal arsenic 1 to buy.

Twenty-one analysts person said it is simply a beardown buy, according to marketplace information institution Refinitiv.

Shares person climbed by a 5th since nan commencement of 2024 and nan group is locked successful a three-way tussle pinch Apple and Nvidia for nan mantle of nan astir valuable institution successful nan world.

Hunter said: 'Aside from its famed Microsoft and Excel applications, nan group is now much focused connected some unreality computing and artificial intelligence, some of which either person made, aliases person nan imaginable to make, important returns successful early for nan use of institution profits and shareholders alike.' Investors will beryllium watching intimately adjacent week for much item connected really nan institution will cement its position astatine nan top.

AMAZON: STRONG BUY 

It whitethorn travel arsenic nary astonishment fixed its lucrative way grounds that experts are flagging up Amazon shares arsenic a beardown buy.

Expectations for nan tech giant's imaginable for ever-increasing profits and income person been entity precocious for respective years. But analysts opportunity location are nary signs of this waning.

Apart from its ultra-low UK taxation bills, nan institution is champion known arsenic a one-stop online shop for thing from toilet rotation to lampshades. But Amazon has different money spinner that is getting everyone excited.

Mamta Valechha, user expert astatine Quilter Cheviot, says its unreality business - Amazon Web Services (AWS) - will beryllium a cardinal attraction for investors erstwhile nan group announces its quarterly figures adjacent week.

AWS has go a slow but dependable profit motor and has been making awesome strides into generative AI.

That is wherever you tin provender a machine strategy text, image, audio, video, and codification and it will make caller content.

For instance, you tin inquire generative AI models really to constitute an full caller successful nan style of Ernest Hemingway and it will churn retired a draught successful minutes.

According to Refinitiv, of nan 61 analysts covering Amazon, each but a azygous dissenter complaint it arsenic a 'buy' aliases 'strong buy'. The solitary objector advises clients to 'hold'.

Valechha said: 'Amazon is besides taking nan opportunity to usage its beardown maturation to reinvest successful nan business and return advantage of nan beardown request and backlog successful its unreality division.

'Given its history of transportation successful this benignant of area, we are assured Amazon tin make a occurrence of AI.'

META: STRONG BUY 

Facebook-owner Meta has besides managed to triumph nan assurance of nan City and Wall Street, contempt its well-documented struggles successful caller years.

Advertising is simply a cardinal portion of its business meaning nan societal media elephantine has suffered arsenic trading budgets person been squeezed.

The group - which besides owns societal media sites WhatsApp and Instagram - saw shares tumble complete 60pc during nan people of 2022. They only started to rally again astatine nan commencement of past year.

This coincided pinch Meta leader Mark Zuckerberg laying disconnected complete 21,000 unit and axing respective experimental projects.

Dan Ives, expert astatine Wedbush, said Meta is backmost successful a beardown position and nan banal is simply a 'buy.' He argues investors tin rate successful arsenic Meta's 'AI communicative and advertizing rebound plays out'.

Zuckerberg, who founded nan tech elephantine successful 2004, is trying to re-fettle nan advertisement business pinch a attraction connected AI.

He has besides been pumping rate into areas specified arsenic smart spectacles, wherever nan institution doesn't presently make money.

Meta smart glasses, which costs astir £300, let users to return photos and videos, perceive to music, make calls and livestream to Facebook and Instagram.

Ahead of its 2nd 4th figures adjacent week, analysts Hargreaves Lansdown said they would beryllium 'watching for Zuckerberg's commentary arsenic overmuch arsenic nan numbers themselves'.

The stock value is often delicate to Zuckerberg's remarks much than nan financial results themselves.

In April, shares plunged erstwhile he signaled Meta's costly stake connected AI could return years to salary disconnected Hargreaves said: 'In today's landscape, throwing rate astatine AI is nan purpose of nan game. But Meta needs to person investors there'll beryllium a decent capable return astatine nan extremity of nan roadworthy and location are nary guarantees.'

APPLE: BUY 

Apple investors person besides endured a bumpy thrust successful caller months, though it remains nan world's astir valuable institution pinch a marketplace worth of £2.6trillion.

Not only has nan group been grappling pinch lagging request for its products, but it has besides been facing nan imaginable of a spot warfare betwixt nan US and China - thing that would put it nether immense pressure.

Nonetheless, marketplace experts are still backing nan banal arsenic 1 to buy.

Ben Barringer, exertion expert astatine Quilter Cheviot, said nan institution was simply going done a 'transition phase'.

Apple shares are up 17pc successful nan past year, which makes it 1 of nan weaker performers among nan Magnificent Seven. This could make it a comparatively inexpensive bargain correct now.

And Barringer said nan institution now has nan chance to 'turn nan corner' later this twelvemonth pinch nan motorboat of its latest iPhone, which could nonstop shares flying.

It is expected to motorboat an 'AI smartphone' which could move retired to beryllium a changeable successful nan limb for investors.

Rumours propose caller features connected nan iPhone 16 could see providing summaries of news stories and photograph editing tools.

And nan institution appeared to flex its muscles successful May erstwhile it announced nan largest stock buyback successful firm history.

The institution revealed it will walk £88bn buying its ain banal backmost from investors.

That is mostly a motion that bosses are assured astir their company's prospects - believing nan champion finance they tin make is successful its ain shares.

But nan group's vulnerability to nan Chinese marketplace has besides made it a 'hold' for galore finance banks.