Magnificent Seven Stocks: Microsoft Holds This Crown,…

Magnificent Seven Stocks: Microsoft Holds This Crown, Fends Off Apple, Nvidia

The Big 3 — Nvidia, Apple and Microsoft — continue to battle it out for market-captilization supremacy. After multiple changings of the guard among the Magnificent Seven stocks recently, Microsoft now wears the crown — at least for now. As of Friday's close, Microsoft accounted for 9.6% of the Nasdaq's market cap weighting. Apple is next at 9.3%, followed by Nvidia, which has slipped to 8.8% after a string of negative reversals.

On Monday, Microsoft leads with a $3.37 trillion market cap, while, Apple ($3.31 trillion) and Nvidia ($3.05 trillion) remain on hot on its heels as the only other stocks in the trillion-dollar club.

Next up in the market cap rankings in terms of weighting on the Nasdaq come Alphabet (6.5%), Amazon.com (5.8%). Meta Platforms accounts for 3.7% of the Nasdaq.

While Nvidia CEO Jensen Juang says Tesla is "far ahead" on self-driving vehicles, Tesla stock has struggled this year. As a result, its market cap weighting on the Nasdaq has dropped to 1.8%.

Although not considered a Mag 7 stock, valued at 2.2% of the Nasdaq, Broadcom represents a larger percentage of the tech-heavy index. But like Nvidia, Broadcom is now trying to rebound following recent drops off record highs.

Magnificent Seven Stocks News & Analysis

What Are The Magnificent Seven Stocks?

Just as Wall Street moved on from the Nifty 50 in the 1970s as the term's popularity and usefulness waned, the so-called FANG or FAANG stocks have lost their bite. Replacing them in the lexicon du jour is the Magnificent Seven Stocks: Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia and Tesla.

From GOOGL, AAPL and AMZN to META, MSFT, NVDA and TSLA, the Magnificent Seven stocks account for around half of the weighting of the Nasdaq.

Unlike the price-weighted Dow Jones Industrial Average, the Nasdaq composite and S&P 500 indexes are market-capitalization weighted.

As a result, the combined market caps of the Magnificent Seven stocks have a disproportional influence on the Nasdaq composite and Nasdaq 100.

To help address this issue, the Nasdaq rebalanced the index on July 24. That reduced the individual weighting of the Magnificent Seven stocks. But the rebalancing simply changed the total weighting of these seven megacaps from over 50% to nearly 50%.

In short, the Nasdaq 100 remains heavily concentrated on these megacap growth stocks.

Return Of The King: Nvidia Back On Top — In More Ways Than One

What Percentage Of Nasdaq Are The Magnificent Seven Stocks?

Here are the current individual market cap weightings of Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia and Tesla. The weightings will, of course, change as their market caps fluctuate.