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.