The so-called Magnificent Seven - a group that includes mega-cap tech companies Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) - propelled stock markets to new highs in 2023, as investor enthusiasm over artificial intelligence (AI) propelled these names sharply higher. These companies collectively added a staggering $5.1 trillion in total market cap during 2023, and even inspired the creation of their own exchange-traded fund (ETF), in the Roundhill Magnificent Seven ETF (MAGS).
However, the Mag 7's collective momentum has cooled considerably in 2024. While MAGS is still narrowly outperforming the tech-heavy Nasdaq-100 Index ($IUXX) on a YTD basis, it's largely thanks to the outsized returns of NVDA and META, considering that three members of the group - TSLA, AAPL, and GOOGL - are underperforming the broader index by a considerable margin.
