While Nvidia tries to hold support, three other Magnificent Seven stocks — Apple, Amazon.com and Microsoft — look to strengthen their own current moves. Each of these artificial intelligence powerhouses makes the latest update to the IBD Breakout Stocks Index.
Joining AAPL, AMZN, MSFT and NVDA stock on this screen, 10 stocks from one hot industry group — enterprise software — also make the list. Several names on both of the tables below remain in or near new buy zones.
Just as the AI boom fuels demand for Nvidia, Microsoft and the other Magnificent Seven stocks, machine learning, cloud computing and other AI-related technologies play a key role in powering enterprise software firms.
Here's a look at the stock ratings for select Magnificent Seven stocks and enterprise software firms, with a focus on which stocks are in or near a buy zone.
See Who Joins NVDA, AMZN, AAPL, MSFT On The IBD Breakout Stocks Index
4 Breakout Magnificent Seven Stocks To Watch
Aside from being AI giants on the IBD Breakout Stocks Index, Apple, Amazon, Microsoft and Nvidia stock have another thing in common: testing support at key moving averages.
While taking a breather and pulling back in recent days, Nvidia stock continues to test support at its 50-day line. On Wednesday, Nvidiais briefly cleared, then fell right back below its 21-day exponential moving average. The stock closed the session 4% below the 476.09 double-bottom buy point it cleared last month.
After bouncing off its 21-day line, Apple stock popped up over 2% Tuesday to clear a 192.93 handle entry. On Wednesday, AAPL stock has slipped just below that entry. The iPhone maker remains on pace for a sixth straight up week as its relative strength line trends higher. The stock has endured choppy action since the end of July.
Microsoft stock also recently retook its 21-day line and climbed back into buy range. The IBD Long-Term Leader is now testing both of those benchmarks. Parroting MSFT, Amazon stock cotninues to test its own buy zone after retaking its 21-day line earlier.
Since the Magnificent Seven stocks account for around half the weighting of the Nasdaq, any strengthening or weakening of Amazon, Apple, Nvidia and Microsoft has a significant impact on the tech-heavy index.
| Company | Symbol | Comp Rating | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|
| Microsoft | 99 | 97 | 92 | A | B- | |
| Nvidia | 98 | 99 | 97 | A | E | |
| Amazon.com | 91 | 82 | 94 | C | C- | |
| Apple | 91 | 91 | 87 | B | B- |
Shopify, Workday Lead Enterprise Software Group
With the highest-possible 99 Composite Rating, Workday leads the enterprise software group, which ranks No. 28 among the 197 industries IBD tracks.
After reporting earnings on Nov. 28, WDAY stock broke out, gapping up to more than an 11% gain in massive volume. The provider of cloud-based human resources and finance software now trades just beyond the very top of its buy range.
Salesforce.com made a similar move after it reported on Nov. 29. CRM stock gapped up just under 10%, also in extremely heavy trade. Salesforce stock now floats around the top of its buy zone.
Shopify cleared a 67.60 buy point in the middle of last month. SHOP stock reversed lowed Wednesday, declining over 4% but remains extended from that entry.
Other enterprise software stocks in or near buy range include Monday.com, Dynatrace, JFrog, Sprinklr, Samsara and Freshworks.
Note that Sprinklr reports earnings after the close today.
| Company | Symbol | Comp Rating | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|
| Workday | 99 | 99 | 93 | A | B | |
| Shopify | 99 | 98 | 96 | C | A- | |
| Monday.com | 98 | 81 | 92 | C | A+ | |
| Dynatrace | 98 | 98 | 91 | A | B+ | |
| JFrog | 98 | 81 | 88 | C | B- | |
| Salesforce | 98 | 98 | 95 | B | B | |
| SAP | 97 | 83 | 93 | B | B+ | |
| Sprinklr | 97 | 81 | 95 | C | A+ | |
| Samsara | 95 | 81 | 97 | C | B | |
| Freshworks | 94 | 81 | 90 | C | B |
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
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