Sorry, Apple. Nvidia Just Snatched Your Crown

Sorry, Apple. Nvidia Just Snatched Your Crown — For Now.

Apple may be the king of Cupertino, but the iPhone maker no longer rules this realm. After already surpassing Microsoft in terms of market capitalization weighting on the Nasdaq, Nvidia has just surpassed Apple stock. As of Tuesday's close, Nvidia stock accounted for 9.6% of the tech-heavy index, slightly edging out Apple's 9.5%. That battle between the top two Magnificent Seven stocks is sure to continue.

Microsoft stock remains in third place, making up 8.6% of the Nasdaq.

Another battle rages on between Alphabet and Amazon.com. These two titans of tech both account for 5.9% of the Nasdaq.

In other news on the Magnificent Seven stocks, Tesla remains in a dead heat with non-Mag 7 member Broadcom. Both make up 2.3% of the index.

Meta Platforms rounds out the group, accounting for 4.1% of the index.

IBD's recommended market exposure level currently stands at a bullish 60%-80%. The five-tiered system, a key part of The IBD Methodology, helps investors stay protected and profitable with sound risk management.

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.

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.

Microsoft8.668