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Investor enthusiasm surrounding artificial intelligence (AI) has once again driven the "Magnificent Seven" tech stocks to another banner year, with Tesla, Meta, Amazon, Alphabet, and Apple stocks all recently hitting record highs and Nvidia shares boasting a more than 175% gain in 2024, according to Yahoo Finance. The seventh stock in this elite category is Microsoft.

In 2025, investors expect the hype to spread even further into areas like utilities and software stocks, which will continue to benefit from Big Tech's large AI bet. Goldman Sachs chief US equity strategist David Kostin projects the S&P 500 will reach 6,500 by the end of 2025 and that the rest of the market's gains will come closer to those of large-cap tech stocks, according to the reporting by Yahoo Finance.

"It's less about valuation but more about earnings growth that will dictate those returns," Kostin said during a Goldman Sachs 2025 media roundtable with reporters.