The fourth-quarter earnings season is in full swing, and all eyes are on the Magnificent 7, a group of tech giants that enjoy the market’s attention, thanks in part to the ongoing artificial intelligence boom and their dominance in this space.

These stocks are Apple Inc AAPL, Microsoft Corp MSFT, Alphabet Inc GOOG GOOGL, Amazon.com Inc AMZN, NVIDIA Corp NVDA, Tesla Inc TSLA and Meta Platforms Inc META. ETFs that focus heavily on these stocks have also become attractive options for investors seeking diversified exposure ahead of their earnings results.

If you're looking to ride the earnings wave, here are three ETFs worth considering:

The Roundhill Magnificent Seven ETF MAGS was the first ETF offering equal-weight exposure to these seven stocks. It has an expense ratio of 0.29% and an AUM of $639.75 million. The ETF has grown 61% in the last year.

For a slightly broader yet targeted approach, the MicroSectors FANG+ ETN FNGS could be a good choice. The fund tracks the NYSE FANG+ Index and maintains a 10% share in each of the seven stocks. The expense ratio is 0.58%.

Meanwhile, the Vanguard Mega Cap Growth ETF MGK allocates around 59% of its assets to the Magnificent 7. The ETF has $21.60 billion in AUM and an expense ratio of 0.06%, making this a pocket-friendly option.

What's Next For The Magnificent 7?

As the earnings season progresses, the Magnificent 7 stocks are expected to report earnings growth of 18% in 2025, marking a slowdown, according to a December 2024 report by Bloomberg.

Tesla, Microsoft and Meta Platforms will kick off earnings with reports scheduled after market close on Wednesday. Apple follows Thursday, while Alphabet and Amazon are set to announce results on Feb. 4 and Feb. 6, respectively. Nvidia is likely to release its earnings later in February.

Hangzhou, China-based AI startup DeepSeek launched a new AI model that poses a challenge to U.S. competitors, including Nvidia’s core business. Industry experts like venture capitalist Marc Andreessen called this moment a "Sputnik moment" for U.S. AI companies as this could be a ground-breaker in the AI space, reported Reuters.

Nvidia shares rebounded Tuesday after analysts called the market’s reaction an “overreaction.” Analysts believe advancements like these could drive even more investment in AI, which can be beneficial for companies including Nvidia. Moreover, Nvidia has already said that DeepSeek's inference requires “significant numbers of Nvidia GPUs and high-performance networking."

Tesla has faced mixed fortunes recently. The EV maker reclaimed its trillion-dollar market cap thanks to a favorable policy environment. Yet it hit a roadblock with its fourth-quarter delivery numbers. The company missed estimates and reported its first-ever year-over-year decline in full-year vehicle deliveries.

Adding to the challenges, recent rollbacks of pro-EV policies weighed on Tesla's stock, which fell 2.5% year-to-date. Despite these shortfalls, Tesla's leadership in EV scale and technology gives it an edge, particularly in markets where tariffs might restrict cheaper imports from Chinese competitors.

Microsoft continues to shine as a key AI forerunner with substantial investments in data centers and AI development. The company expects $10 billion in AI-related revenues next quarter.

Meta looks promising, with analysts raising their price targets ahead of its earnings release. Wedbush and BofA Global Securities now peg Meta's stock at $700 and $710, respectively. The social media company expects to generate revenues of $45-$48 billion in the fourth quarter but also anticipates increased spending on AI and infrastructure projects. This might shrink the margins.

Despite rolling out new AI-driven applications late last year, Apple has struggled to gain momentum, particularly in international markets. Its latest iPhone 16 has seen muted sales. Jefferies recently downgraded Apple to Underperform. Looking ahead, Apple expects low to mid-single-digit sales growth in its fiscal first quarter.

Alphabet is currently staring at antitrust lawsuits and increasing competition in the generative AI space. Analysts remain concerned about the long-term impact of AI on Alphabet's core search business.

Amazon continues to dominate e-commerce and cloud computing, while its AI business is growing rapidly. The company's fourth-quarter revenues are projected to land between $181.5 billion and $188.5 billion. Amazon's investments in AI infrastructure, including data centers and custom chips, position it well for sustained growth in this sector.

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