“Magnificent Seven’ Review: The ‘Magnificent Seven’ stocks of the US—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla—proved their worth with substantial gains, dominating market movements in 2023. In 2024, their performance impressed investors again, solidifying their significant influence on the market. The ‘Magnificent Seven’ is a group of seven high-performing and influential stocks in the technology sector.

According to SEC-registered brokerage and investment advisor Vested Finance, the popular ‘magnificent seven’, due to their massive market capitalizations, these stocks have an outsized influence on the Nasdaq Composite and S&P 500 indexes, driving broader market trends. 
 

What are ‘Magnificent Seven’ stocks?

These seven US tech giants, comprising the elite ‘magnificent seven’ pack, are companies at the forefront of sectors such as artificial intelligence (AI), electric vehicles, cloud computing, and digital services. They still have the potential for significant growth, but according to experts, investing in them still carries risks since these factors have already been priced. 

As of 2024, Nvidia leads the Mag Seven group with a market capitalisation of $3.36 trillion, driven by the AI demand boom in the tech sector. Analysts believe the usual risks of market volatility, regulatory changes, technological disruptions, and global economic conditions can influence the performance. 

The term ‘magnificent seven’ has been popularized to describe a set of dominant companies, particularly in the US tech sector. The group comprises the top seven US tech leaders – Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The firms span four sectors: technology services, electronic technology, retail trade, and consumer durables. 

They operate in internet software/services, telecommunications equipment, internet retail, packaged software, semiconductors, and motor vehicles. Over the past five years, Nvidia has led the pack with an impressive return of approximately 3,000 per cent, closely followed by Tesla with a 1,200 per cent gain.

‘Magnificent Seven’ Review 2024: Top gainers

In 2024, artificial intelligence (AI) chip manufacturing giant Nvidia emerged as the top gainer in the magnificent seven-pack, with its stock price soaring as much as 183 per cent year-to-date (YTD). Nvidia was followed by Meta, which ranked second in the US tech giant pack this year. Here’s a closer look at each of the seven stocks from the US tech giant pack:

1. Nvidia (NVDA) – +183.2% YTD

Nvidia has been a standout performer in 2024, with a massive 183.2% year-to-date (YTD) gain. The company continues to be the leader in AI and GPU technologies, benefiting from surging demand for AI-powered applications and its dominant position in the AI chip market. Nvidia’s Q3 earnings exceeded Wall Street expectations, with a substantial increase in both earnings and revenue compared to last year. 

However, the stock recently faced a 3% decline amid reports of an investigation in China for anti-monopoly violations. Despite this setback, Nvidia’s growth prospects in the AI space remain robust, and it continues to be a key driver of the tech sector.

2.2. Amazon (AMZN) – +40.5% YTD

Amazon’s performance has been impressive, with its stock gaining 40.5% YTD. The e-commerce and cloud giant exceeded analyst expectations for its Q3 earnings, with adjusted earnings of $1.43 per share on $158.9 billion in sales. Amazon’s growth is being driven by its Amazon Web Services (AWS) cloud business, but its innovation in AI through Amazon Bedrock, a fully managed service offering foundation models from leading AI companies, has also boosted investor confidence. The company’s ability to reclaim its 201.20 buy point reflects investor optimism about Amazon’s growth trajectory.

3. Apple (AAPL) – +26.0% YTD

Apple, while still a leader in the tech space, saw a 26% YTD gain. Despite strong quarterly earnings—$1.64 per share, a 12% increase year-over-year—the company offered weaker-than- expected sales guidance for the December quarter. The slow rollout of its iPhone 16 and the delay in widespread adoption of its AI features are seen as short-term headwinds. However, Apple’s long-term dominance in the consumer electronics market, combined with its potential in AI, ensures that it remains one of the most influential stocks in the Magnificent Seven.

4. Meta Platforms (META) – +73.4% YTD

Meta, formerly Facebook, has seen a remarkable 73.4% YTD increase in its stock price. The company’s focus on the metaverse and virtual reality (VR) platforms, as well as its growing presence in AI, has bolstered investor sentiment. Meta’s shift towards AI-powered advertising and its investments in augmented and virtual reality technologies have contributed to its strong performance. The company’s ability to navigate through challenges and capitalize on AI-driven growth trends has made it a standout performer in 2024.

5. Microsoft (MSFT) – +14.7% YTD

Microsoft has also been a strong performer, though with a more modest 14.7% YTD gain compared to some of its peers. The company exceeded expectations in its Q1 earnings, posting earnings of $3.30 per share on $65.6 billion in sales, driven largely by the growth of its cloud computing business. However, its guidance for the current quarter fell slightly below analyst estimates, which tempered enthusiasm. Microsoft’s continued strength in cloud computing and AI, particularly through its Azure platform, ensures it remains a critical player in the tech space.

6. Alphabet (GOOGL) – +22.7% YTD

Alphabet, the parent company of Google, has seen a 22.7% YTD gain. Google’s dominance in digital advertising and search remains a key driver of Alphabet’s growth, while the company’s investments in AI and machine learning technologies are expected to pay off in the coming years. Alphabet continues to innovate across various sectors, including cloud computing, AI, and autonomous vehicles, with its efforts to integrate AI into its search and advertising businesses showing promising results.

7. Tesla (TSLA) – +41.4% YTD

Tesla has had an impressive year, with a 41.4% YTD increase in its stock price. The electric vehicle giant reported a 9% profit increase in Q3, surprising investors and reflecting strong demand for its vehicles. Despite some challenges, such as slight revenue misses, Tesla’s focus on expanding its vehicle production capacity and its growing presence in the renewable energy sector have been key to its continued growth. Tesla’s stock price is heavily influenced by broader market trends, but its leadership in the EV market ensures it remains a key component of the Magnificent Seven.