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Investors who have kept faith in the “Magnificent 7” cohort of Apple (AAPL), Alphabet (GOOGL), Tesla (TSLA), Nvidia (NVDA), Meta Platforms (META), Microsoft (MSFT), and Amazon (AMZN) have been rewarded handsomely. These companies collectively added a staggering $5.1 trillion in total market cap during 2023, and the universe of all U.S.-listed stocks would have advanced by just 12.6% last year without their influence, compared to 23.3% with their returns included.
Moreover, analysts at Bank of America continue to remain optimistic about these tech titans, which contrasts their expectations of a slowdown in the broader market. The analysts commented, "Not owning enough US stocks or large-cap stocks or Tech stocks has been a painful stance for many years, and we think it's still a major risk in 2025."