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Don't call it a comeback: Why Goldman sees the downtrodden Magnificent 7 roaring back to beat the market

  • Goldman Sachs predicts that the top tech stocks will outperform the rest of the S&P 500 in 2025 despite the recent slump in the market.
  • The bank expects the 'Magnificent Seven' tech stocks, including Nvidia, Tesla, Meta, Amazon, Microsoft, Alphabet, and Apple, to show superior earnings growth driving their outperformance.
  • Although these tech giants have faced challenges such as trade policy and antitrust concerns this year, they exhibited strong earnings outperformance in the first quarter of 2025.
  • The top tech stocks are currently trading at discounted valuations, making them more attractive for investors, according to Goldman Sachs's chief equity strategist David Kostin.

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