Meta Overtakes Nvidia as Top Performer Among 'Magnificent Seven' Tech Stocks

Nvidia has been the dominant force in artificial intelligence (AI) chip market for years, but this year it's had its ups and downs. In fact, Nvidia slipped in the first quarter of the year, despite its stellar performance over five years with a 1,000% gain. However, when looking at the 'Magnificent Seven' tech stocks in September, Nvidia managed to add 3.4%, which was still one of the better performers.

However, there was another stock that stood out from the group - Meta Platforms (META). The company's shares soared 26% in September, making it the best performer among the 'Magnificent Seven'. This is a significant improvement for the laggard compared to other members of the group over the past year.

META's impressive performance can be attributed to its recent launch of Muse personal AI agent. The AI-powered chatbot has been downloaded 730,000 times in just five days after its release and even surpassed OpenAI's ChatGPT to become the No. 1 iOS free app in the U.S.

While META's current price is around $728.08 with a forward earnings estimate of 23x, investors may be willing to pay a premium for the company's well-established business and progress in AI.