Introducing BATMMAAN stocks: A lucrative way to tap US markets?

By Shanthi Rexaline

A new grouping of stocks dubbed ‘BATMMAAN’ that promises above-market returns has taken Wall Street by storm. These stocks, all from the high-flying tech sector, have fueled the U.S. bull market since October 2022.

Meanwhile, India’s market has enjoyed an even longer bull run, with key indices trending upward since the onset of the pandemic. The Sensex has surged nearly 200% since bottoming out in late March 2020.

Against this backdrop, valuation and lingering macroeconomic concerns make stock screening challenging. One strategy is to identify stocks that could weather macroeconomic and geopolitical setbacks and outperform even in a worst-case scenario.

Analysts favor stocks tied to new-age technologies such as artificial intelligence (AI) and quantum computing as top investment picks.

Year Of BATMMAAN

BATMMAAN comprises the Magnificent Seven stocks – Apple, Inc. (AAPL), Tesla, Inc. (TSLA), Microsoft Corp. (MSFT), Meta Platforms, Inc. (META), Alphabet, Inc. (GOOG) (GOOGL), Amazon, Inc. (AMZN) and Nvidia Corp. (NVDA), along with chipmaker Broadcom.

The combined market capitalization of these eight BATMMAAN stocks is $17.29 trillion (based on Jan. 17 closing price), accounting for about 35% of the S&P 500’s $49.81 trillion.

Most of these companies that comprise this grouping are frontrunners in the AI revolution, which is becoming entrenched and is widely believed to play out over the next few years. With some already having had a stellar run, analysts believe there is more upside potential left to tap into.

Let’s dig into each of these BATMMAAN stocks…

Broadcom

San Jose, California-based Broadcom is a semiconductor and infrastructure software solutions company. Its AI portfolio, comprising the AI XPUs and Ethernet networking portfolio, has fueled strong growth in recent quarters.

Broadcom’s fiscal year 2024 revenue, released in mid-December, rose 44% year-over-year (YoY) to a record $51.6 billion, thanks to a 220% jump in its AI revenue to $12.2 billion and contribution from VMware business, which it acquired in Nov. 2023.

On the earnings call, CEO Hock Tan touted an AI serviceable addressable market opportunity of $60 billion to $90 billion in fiscal year 2027 alone, thanks to three hyper-scale customers.

Since the start of 2024, the stock has gained nearly 113%. The company’s 10-for-1 stock split took effect in mid-July 2024.

Chart Courtesy of TradingView

Last week, Jefferies semiconductor analyst Blayne Curtis named Broadcom his top semiconductor pick, Barron’s reported.

Curtis’ 12-month price target for Broadcom is $300, representing scope for over 26% upside potential.

Apple

Notwithstanding the lukewarm reception to the iPhone 16 launched in September, Apple’s shares ended 2024 with an above-market return of 31%. Since then, sentiment towards the stock has soured amid views that iPhone demand in China, one of its key markets, has been lackluster. Analysts blame the slow rollout of Apple Intelligence features for the soft demand.

However, Wedbush analyst Daniel Ives holds a bullish view of the stock and has a Street-high price target of $325, representing over 41% upside potential from current levels. He attributes his optimism to expectations of an iPhone Supercycle, set in motion by the Apple Intelligence features, which began rolling out in the U.S. in December.These features are expected to gradually make their way to the rest of the geographies.

Ives predicts record iPhone sales north of 240 million units in the fiscal year ending Sept. 2025.

Not all share his optimism. According to the Yahoo Finance data, the consensus price target for the stock is a more muted $247.63, which leaves scope for a more muted 8% gain.

Tesla

Tesla stock has had a stellar run since Donald Trump’s election victory as the Street expects expedited regulatory clearance for the electric vehicle maker’s full self-driving software. It gained about 63% in 2024 and has added an incremental 5.6% since then.

The EV maker sells four car models, namely the Model 3, Y, S and X, with the latter two being premium models, and the all-electric Cybertruck. Automotive revenue, including regulatory credits, made up roughly 80% of the total revenue in the third quarter. The company also has a thriving energy storage business.

CEO Elon Musk’s proximity to Trump is healthy for Tesla. In an early November report, Ives said, “We believe a Trump win could add $40-$50 per share to Tesla’s stock.”

Wedbush’s Ives’ $515 price target for Tesla suggests an upside potential of nearly 21% from current levels.

Microsoft

Software giant Microsoft is among the frontrunners in the AI race following an expanded collaboration announced with OpenAI – the company behind the ChatGPT large-language model, in early 2023. Since then, Microsoft has bolstered its products and services with AI features, and it also has a strong presence in the public cloud market.

Ives has a 12-month price target of $550 for Microsoft, about 23% higher than the current market price.

Microsoft’s businesses include 365 commercial products and cloud services, public cloud service Azure, server products, personal computing products such as Windows, Gaming as well as search and advertising business.

Meta Platforms

Mark Zuckerberg-run Meta’s stock is coming off a strong year with a 66% gain, thanks to a recovery in ad spending, its product momentum, AI initiatives and efficiency focus. Wedbush’s recent “Digital Advertising Survey” showed that 54% of the Meta advertisers contacted said they increased spending by 10% or more YoY in the fourth quarter, and 58% plan to increase spending by 10% or more in 2025.

Alphabet

Google parent Alphabet’s shares had a nice run in December as the Sundar Pichai-led company was brisk with enhanced feature announcements.The stock touched an all-time intraday high of $201.42 on Dec. 17 but has since retraced some of the up move.

The company derived about 56% of its third quarter total revenue from its Search business and 13% from Google Cloud.

Chart Courtesy of TradingView

BofA Securities analyst Justin Post recently maintained a Buy rating on the stock and increased the price target to $225, suggesting about 15% upside potential. He sees 2025 as a pivotal year for the company, as the year could establish it as an AI leader or raise the risk of search disruption.

Amazon

E-commerce giant Amazon recently received a price target boost due to optimistic expectations regarding its AWS public cloud business, and continued growth in its retail and advertising businesses. BMO Capital Markets analyst Brian Pitz upped his price target for Amazon stock from $236 to $265, translating to a potential gain of 17.3% for the year.

Nvidia

Nvidia stock has rallied strongly for two years running as the company built up a near monopoly position in the market for high-performance chips that power data centers running AI applications and processes. Data Center revenue, which includes contribution from AI accelerator sales, made up 88% of Nvidia’s total revenue in the fiscal 2025 third-quarter that ended Oct. 27, 2024.

Nvidia stock gained 178% in 2024, over and above the 240% jump in the previous year.

The average analyst’s price target for the stock is $173.08, up an estimated 25.7% from the current level. Jefferies analyst Curtis’s $185 price target implies a steeper 34% upside potential.

BATMMAAN Vs. Sensex

According to HSBC’s latest estimates, India’s Sensex could end 2025 at 85,990. The upside potential implied by the brokerage’s latest price target for the key Indian stock market gauge is 12%.

Each BATMMAAN stock is forecast to generate returns either equivalent to or in excess of the Sensex.

For Indian investors, the BATMMAAN stocks represent a compelling opportunity to tap into the global AI and tech revolution. That being said, investors should weigh valuations, geopolitical risks, and their overall portfolio strategy before committing to these high-flying stocks.

Disclaimer

Note: We have relied on data from Yahoo Finance throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.

The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.

Shanthi Rexaline is a seasoned financial journalist with over 20 years of experience covering U.S. market. She has deep expertise in the technology, electric vehicle, and pharmaceutical industries. Shanthi holds a Bachelor’s degree in Agriculture and a Master’s in Business Administration. She has worked as a Senior Writer for leading U.S. financial news platforms, providing insightful analysis of the market and stocks.

Disclosure: The writer and her dependents do not hold the stocks discussed in this article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.