Magnificent 7 Stocks Dominated in 2024. Is a Repeat Likely in 2025?

In 2024, the S&P 500 had again another fantastic year, rising more than 20% for the second year in a row. However, a handful of companies deserve much of the credit for this outstanding performance. The much talked about ‘Magnificent Seven’ stocks’ performance in 2024 accounted for more than half of the index’s roughly 23% return. The market capitalization of these seven companies make up more than one-third of the value of the S&P 500.

So, who are the ‘Magnificent Seven’ group of stocks?

The elite group of Magnificent Seven includes Apple, Microsoft, Alphabet (the parent company of Google), Amazon, Nvidia, Meta Platforms, and Tesla. The surge in interest surrounding artificial intelligence (AI) played a key role in driving stock process of these tech giants. They are listed both on the Nasdaq 100 and S&P 500 indices.

These companies outperformed their peers in 2024, continuing the dominance of Big Tech stocks that began in the first half of 2023, just after the crisis in American regional banks unfolded.

Collectively, these large-cap technology giants—Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META), and Tesla (TSLA)—saw their stocks climb 63% in 2024, following an even more impressive 75% surge in 2023.

Looking ahead, the US stock market’s performance, particularly as reflected in the Nasdaq 100 index, remains closely tied to the fortunes of these seven companies.

In 2024, the group’s profits accounted for over 75% of the S&P 500’s earnings growth. While the ‘Magnificent Seven’ are expected to continue perform in 2025, analysts predict their gains may be more moderate compared to the extraordinary growth of the past two years.

Investing heavily in technology stocks, however, comes with risks. Overexposure to a single sector can also increase portfolio vulnerability. Although AI remains a dominant and promising theme, a portfolio overly concentrated in technology firms could face higher levels of risk. For global investors, diversification remains crucial for managing potential market volatility.

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