In a year marked by market volatility, the Magnificent 7, a group of tech giants including Microsoft (MSFT), Nvidia (NVDA), Amazon (AMZN), Google (GOOG)(GOOGL), Meta Platforms (META), Apple (AAPL), and Tesla (TSLA), have proven their mettle by outperforming the broader equity markets.
Despite a recent market downturn that saw every sector except Energy in the red, the Magnificent 7 remained relatively unscathed. By afternoon trading on Tuesday, all but Tesla had slipped no more than 1%, with Meta even posting slight gains.
“The Magnificent 7’s resilience during this market turbulence is a testament to their strong fundamentals and ability to adapt to changing market conditions,” says Tobi Opeyemi Amure, an analyst at Trading.Biz. “These companies have proven time and again that they can weather storms and emerge stronger.”
The Roundhill Magnificent Seven ETF (MAGS) has surged an impressive 55% since last April, leaving the S&P 500 and the NASDAQ 100 in the dust with their respective 27% and 38% growth over the same period.
However, not all members of the Magnificent 7 have shared in the success:
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Apple has declined 12.2% year to date
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Tesla has plummeted 33% since the New Year
NASDAQ:TSLA chart by TradingView
Despite these outliers, the market remains bullish on the remaining five. Meta, for example, has climbed nearly 40% year to date, bolstered by the success of its Reels feature and the potential ban of rival TikTok in the U.S.
Amazon, up 19% year to date, continues to dominate the cloud service provider market with AWS, while Microsoft’s investment in OpenAI has helped it gain over 12% and maintain its “Strong Buy” rating from Wall Street analysts.
The standout performer, however, is Nvidia, whose stock value has skyrocketed 81% year to date. “AI server demand is expected to grow by more than 40% this year in Asia alone,” notes Andrew Nowinski, Senior Analyst at Oppenheimer. “Nvidia is well-positioned to capitalize on the burgeoning AI market.”
As the tech landscape continues to evolve, the Magnificent 7’s ability to weather market turbulence and deliver impressive returns sets them apart as resilient giants in an increasingly competitive industry.
