The Magnificent Seven of Stocks: Technology Companies Dominate the Market
Technological companies, including Tesla and Nvidia, have become dominant players in the market, forgetting about the popular acronym FAANG and GAMMA. The new group of stocks, known as the “Magnificent Seven,” consists of seven mega-cap companies. All of these companies have shown impressive growth in 2023. The rise of these stocks has also led to growth in major indexes such as the S&P 500 and Nasdaq Composite.
Key information:
- At the beginning of 2023, stocks of the “Magnificent Seven,” including Nvidia and Tesla, became the main source of growth for the S&P 500. The huge growth of these stocks has led to growth in major indexes: the S&P 500 has risen by 14%, and the Nasdaq Composite has risen by 30% since the beginning of the year. The “Magnificent Seven” includes GAMMA stocks – Alphabet, Apple, Meta Platforms, Microsoft, and Amazon – as well as two new participants: Nvidia and Tesla.
- Last month, Nvidia’s stocks reached a market capitalization of $1 trillion due to the demand for semiconductor chips, which are a key component for artificial intelligence.
- Thanks to the growth of the “Magnificent Seven” stocks, the overall market capitalization of the group has grown by 60% this year, reaching $11 trillion. This is nearly three times the size of Germany’s economy.
The new year has started with strong growth in the stocks of technological companies, including Nvidia and Tesla, which now dominate the market. This group of stocks, called the “Magnificent Seven,” includes mega-cap companies such as Alphabet, Apple, Meta Platforms*, Microsoft, Amazon, Nvidia, and Tesla.
Stock capitalization of “Magnificent Seven”
| Company | Market Capitalization as of July 7, 2023 |
|---|---|
| Apple Inc. | $2.999 trillion |
| Microsoft Corporation | $2.507 trillion |
| Alphabet Inc. | $1.521 trillion |
| Amazon.com, Inc. | $1.332 trillion |
| NVIDIA Corporation | $1.05 trillion |
| Tesla, Inc. | $869.807 billion |
| Meta Platforms, Inc. | $744.673 billion |
The increase in the stocks of these companies has also led to the growth of key indices such as the S&P 500 and Nasdaq Composite. Since the beginning of the year, the S&P 500 has grown by 14%, while the Nasdaq Composite has grown by 30%.
The rapid development of the “Fabulous Seven” is due to the huge demand for these companies’ products, especially artificial intelligence. The market capitalization of this group of companies has increased by 60% this year, reaching $11 trillion. This is nearly three times the size of Germany’s economy.
Last month, Nvidia’s stocks reached a trillion-dollar valuation for the first time, thanks to high demand for semiconductor chips, which are a key component for the development of artificial intelligence. This has made the company one of the two new members of the “Fabulous Seven.” Nvidia’s stocks have grown by almost 200% since the beginning of the year, making it part of the trillion-dollar club.
It is also worth noting the success of Tesla, whose stocks have grown by 126% this year. This is due to the increasing demand for electric vehicles and deals with competitors in the charging technology field.
Apple became the first company to reach a market capitalization of $3 trillion. Which company will be the next to reach this valuation? Morgan Stanley predicts that Microsoft will be the next company to achieve this milestone.
However, despite the advancements in artificial intelligence, the “Fabulous Seven” companies still generate the majority of their revenue from other sources. They play a crucial role in the development and application of AI, but their main sources of income remain other areas of business.
