What stocks are considered the magnificent seven?
The “Magnificent Seven” might sound like the title of an old Western film or what a large family might name its group chat, but in finance the moniker is being used to describe a group of high-performing tech stocks: Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla.
Magnificent Seven Stocks: Nvidia Stock Surges, Tesla Dives To New Low. Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla lived up to their name in 2023 with big gains. But the first quarter of 2024 showed a big divergence of returns.
For those out of the loop, the “Magnificent 7” stocks — Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) — drove the S&P 500 in 2023 and account for about half of the weighting of the Nasdaq index.
The "Magnificent Seven" stocks have paced the broader stock market for three years. That group comprises Amazon, Apple, Nvidia, Meta Platforms, Microsoft, Alphabet, and Tesla.
As the artificial intelligence (AI) revolution rolls on like a juggernaut, the "Magnificent 7" cohort of Microsoft (MSFT), Nvidia (NVDA), Amazon (AMZN), Google (GOOG), Tesla (TSLA), Apple (AAPL) and Meta Platforms (META) has been one of the main drivers of the stock market's advance.
Key Takeaways. Each of the so-called Magnificent Seven stocks—Nvidia, Meta, Amazon, Microsoft, Alphabet, Apple and Tesla—gained at least 49% in 2023 and powered the broader market higher.
UBS Investment Bank's chief US equity strategist Jonathan Golub downgraded six of the "Magnificent Seven" stocks — Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta (META), and Nvidia (NVDA) — from Overweight to Neutral in a new research note on Monday.
Some Magnificent Seven stocks are better than others. Microsoft (MSFT): The company is rapidly expanding in the artificial intelligence industry. Nvidia (NVDA): Revenue and profits continue to soar. Alphabet (GOOG, GOOGL): This undervalued tech stock has delivered exceptional returns for long-term investors.
| Stock | Expected Change in Stock Price* |
|---|---|
| Tesla Inc. (TSLA) | 61% |
| Mastercard Inc. (MA) | 14.2% |
| Salesforce Inc. (CRM) | 7.2% |
| Advanced Micro Devices Inc. (AMD) | 11.3% |
- Intuit Inc. (NASDAQ:INTU) Number of Q4 2023 Hedge Fund Shareholders: 75. ...
- Tesla, Inc. (NASDAQ:TSLA) ...
- Booking Holdings Inc. (NASDAQ:BKNG) ...
- Netflix, Inc. (NASDAQ:NFLX) ...
- Broadcom Inc. (NASDAQ:AVGO) ...
- Micron Technology, Inc. (NASDAQ:MU) ...
- Adobe Inc. (NASDAQ:ADBE) ...
- Apple Inc. (NASDAQ:AAPL)
What 5 stocks is Warren Buffett buying?
| Stock | Number of Shares Owned | Value of Stake |
|---|---|---|
| Coca-Cola (NYSE:KO) | 400,000,000 | $23.8 billion |
| Chevron (NYSE:CVX) | 126,093,326 | $18.9 billion |
| Occidental Petroleum (NYSE:OXY) | 248,018,128 | $15.1 billion |
| Kraft Heinz (NASDAQ:KHC) | 325,634,818 | $11.3 billion |
- Apple (AAPL).
- Bank of America (BAC).
- American Express Co. (AXP).
- Coca-Cola Co. (KO).
- Chevron (CVX).
- Occidental Petroleum (OXY).
- Kraft Heinz (KHC).
- Moody's Corp. (MCO).
Our list for 2024 includes a diversified mix of familiar stocks and some surprises, once again leaning toward, but not exclusively to, the value camp: Alibaba Group Holding, Alphabet, Barrick Gold, Berkshire Hathaway, BioNTech, Chevron, Hertz Global Holdings, Madison Square Garden Sports, PepsiCo, and U-Haul Holding.
It wasn't until 2023 when the Magnificent Seven emerged. Michael Hartnett, a Bank of America analyst, is credited with using this borrowed term from the 1960s movie to describe high-performing stocks, according to U.S. News and Money.
In 2023, Bank of America analyst Michael Hartnett began using the phrase "Magnificent Seven" to describe these stocks, borrowing from the 1960s ensemble Western movie of the same name.
MAGS was formerly known as the Roundhill Big Tech ETF but changed its name in November 2023 and added exposure to Tesla and Nvidia. The fund gives equal exposure to the seven companies. Roundhill is planning on launching three additional Magnificent Seven funds in early 2024, including leveraged and inverse versions.
Hedge funds' top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Some top stocks both hedge funds and Cramer love include Apple Inc (NASDAQ:AAPL), NVIDIA Corp (NASDAQ:NVDA) and Microsoft Corp (NASDAQ:MSFT).
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Swadeshi Polytex | 269.10 |
| 2. | KP Green Engg. | 557.10 |
| 3. | TAC Infosec | 481.90 |
| 4. | Waaree Renewab. | 2755.35 |
| Company (Ticker) | Forward P/E Ratio |
|---|---|
| Citigroup, Inc. (C) | 8.4 |
| Fidelity National Information Services, Inc. (FIS) | 15.3 |
| Intuitive Surgical, Inc. (ISRG) | 60.9 |
| The Kraft Heinz Company (KHC) | 12.2 |
The two investments held in Berkshire Hathaway's portfolio that Buffett recommends more than anything else are two S&P 500 index funds. The SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard S&P 500 ETF (NYSEMKT: VOO).
What are the Magnificent Seven stocks returning?
Since the start of 2023, the Magnificent Seven stocks, or the Magnificent 7 stocks as it's sometimes written, which top the S&P 500 index, have gained a cumulative average of 107%. The benchmark, by comparison, is up 26% over the same period.
The S&P 500—the Standard & Poor's 500 Index—is considered to be one of the best measures of U.S. stock market performance, tracking 500 of the largest and most stable publicly traded companies in the country.
Investors' concerns that the Magnificent Seven bubble may soon be about to burst could be completely unfounded, according to new analysis from JPMorgan, which argues the top-performing tech stocks are actually undervalued compared to rival stocks.
- DaVita Inc. ( ticker: DVA)
- DraftKings Inc. ( DKNG)
- Extra Space Storage Inc. ( EXR)
- First Solar Inc. ( FSLR)
- Gen Digital Inc. ( GEN)
- Microsoft Corp. ( MSFT)
- Nvidia Corp. ( NVDA)
- SoFi Technologies Inc. ( SOFI)
- A lot is working in favor of these companies. ...
- DraftKings (DKNG): With expansion on the cards, DraftKings could enjoy a higher market share in the next two years.
- Oracle (ORCL): Oracle's partnerships with Palantir (PLTR) and Nvidia (NVDA) will benefit the business.
