The far-from-over AI revolution has sparked breakouts in Magnificent Seven stocks Amazon.com, Meta Platforms and Nvidia. And Microsoft has also ignited a fresh buy zone as it unleashes a wave of artificial intelligence innovations. MSFT stock remains in buy range as it earns a spot on IBD Leaderboard, joining Nvidia, Meta and Amazon.
As AMZN stock, META, NVDA and MSFT take off, Apple and Alphabet stand poised to join the party. Meanwhile, Tesla continues to test resistance at its 50-day moving average.
Sporting the highest-possible 99 Composite Rating, MSFT stock and Meta lead the ranks of the Magnificent Seven stocks. Nvidia and Google stock remain just behind with very strong ratings of their own.
Microsoft, Meta Lead Magnificent Seven Stocks
| Company | Symbol | Comp Rating | EPS Rating | RS Rating | Ind Group RS | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|
| Microsoft | 99 | 97 | 94 | A+ | A | B+ | |
| Meta Platforms | 99 | 95 | 98 | B+ | A | C+ | |
| Nvidia | 98 | 99 | 98 | C+ | A | E | |
| Alphabet | 97 | 97 | 92 | B+ | A | D+ | |
| Apple | 90 | 91 | 88 | B- | B | B- | |
| Amazon.com | 88 | 82 | 94 | B | C | C | |
| Tesla | 88 | 88 | 86 | B | B | B- |
Microsoft Co-pilots AI, Unveils Innovations
Like Nvidia, Amazon, Meta and others, Microsoft has tapped into the big buzz around artificial intelligence this year. It has launched aggressive forays into AI technologies, using Open AI to add functionality to its Bing browser and Office products.
As announced through the Microsoft Ignite service earlier this month, the company unveiled two custom-designed chips and integrated systems. The Microsoft Azure Maia AI Accelerator is optimized for AI tasks and generative AI. The Microsoft Azure Cobalt CPU is an Arm-based processor tailored to run general purpose computer workloads on the Microsoft Cloud.
The Dow Jones software giant noted that the chips represent a last puzzle piece for the company to deliver infrastructure systems designed from top to bottom that can be optimized with internal and customer workloads in mind. The systems include everything from silicon choices, software and servers to racks and cooling systems.
The chips will start to roll out to Microsoft's data centers early next year. Initially, they will power services such as Microsoft Co-pilot or Azure OpenAI Service.
Continuing to further embed artificial intelligence into everyday workflows, Microsoft also offers Copilot, what the company calls "your AI companion." The platform aims to provider smarter and more personalized answers, power productivity and unlock creativity.
MSFT Stock Rises On Bullish Microsoft Report
The Redmond, Wash.-based AI and cloud giant has continued to climb since releasing a bullish earnings report on Oct. 24.
In the September-ended quarter, Microsoft earned $2.99 a share on sales of $56.5 billion, beating analyst estimates. The sales gain marked a 13% year-over-year increase, notching a third straight quarter of accelerating growth.
Wall Street forecasts 15% growth both this year and next.
MSFT Stock Powers Into Buy Range
With its relative strength line floating right around a new 52-week high, MSFT stock continues to trade in buy range following a post-earnings breakout on Nov. 10. The initial buy point was 366.78 from a second-stage cup base.
The buy zone extends to 385.12. An early entry was at 340.86.
Continuing its rise, MSFT stock edged higher Monday, closing in buy range at 378.61.
Note how Microsoft earns a strong B+ Accumulation/Distribution Rating, highest among all the Magnificent Seven stocks.
As Microsoft stock trades in buy range, Meta and Nvidia also continue to nurture new moves. Apple and Google stock have also formed chart patterns that could offer fresh entries as the AI boom and early Santa Claus rally continue to fuel the market indexes.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
