The Magnificent 7 – or Mag 7 – is a group of seven companies that are viewed as some of the leading names in artificial intelligence (AI) and technology.
These are frequently popular stocks with DIY investors, given their perceived leadership of crucial tech trends, as well as their massive global reach.
At the start of 2023, the seven tech companies collectively comprised approximately 20% of the S&P 500 between them. Now, they make up more than a third (34%) of the index.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
So, which companies make up the Mag 7?
Latest Videos FromMoneyWeek
What are the Mag 7 stocks?
The seven companies that comprise the Mag 7 group are:
- Alphabet (NASDAQ:GOOGL) – the parent company of Google, as well as other companies such as the AI lab DeepMind;
- Amazon (NASDAQ:AMZN) – originally an online bookstore, now a giant of e-commerce and cloud computing via AWS;
- Apple (NASDAQ:AAPL) – the tech hardware company that brought the world the MacBook and the iPhone;
- Meta (NASDAQ:META) – formerly Facebook, the company is now heavily focused on ‘Metaverse’ technology as well as AI products, like the Llama model;
- Microsoft (NASDAQ:MSFT) – the computing giant behind the Windows operating system and the Azure cloud platform;
- Nvidia (NASDAQ:NVDA) – the hardware developer that pioneered GPUs, the chips that power AI data centres;
- Tesla (NASDAQ:TSLA) – the electric vehicle manufacturer that launched its long-awaited robotaxi service in Austin, Texas in 2025.
The term ‘Magnificent 7’ was coined by Bank of America analyst Michael Hartnett in 2023. By then, the group was already starting to dominate the stock market in the wake of the AI and tech stock mania that followed the public launch of ChatGPT in late November 2022.
While most of the group are highly diversified – Amazon is an e-commerce company as well as the world’s largest cloud services provider; Alphabet makes phones, self-driving cars and owns YouTube in addition to its cloud computing division and its core internet search business) – AI is their unifying feature as a group.
Some (like Nvidia) sell the hardware that underpins AI, or the cloud services on which models are trained and distributed (Amazon, Microsoft and Alphabet hold a 63% share of the global cloud market between them). Others develop AI platforms, such as Meta’s Llama or Microsoft’s Copilot, or integrate ‘physical AI’ into robots and self-driving cars (especially Tesla).
They are stock market behemoths; all have a market capitalisation (market cap) over $1 trillion as of 17 April. Nvidia, currently the largest in the group, has a market cap of close to $5 trillion.
Over recent years, each of the Magnificent 7 stocks have seen substantial increases in their share price.
In the five years to 17 April 2026, the Mag 7 stocks registered the following share price performance:
- Nvidia: +1,170%
- Alphabet: +202%
- Meta: +127%
- Apple: +107%
- Microsoft: +69%
- Tesla: +62%
- Amazon: +47%
In terms of how the group as a whole has performed, the CNBC Magnificent 7 Index – which tracks the seven stocks – gained 328% between its inception in October 2022 and 17 April 2026.
Why invest in the Mag 7 stocks?
It is no coincidence that the Mag 7 are some of the world’s most popular stocks to invest in.
“These stocks have a history of technological innovation and investment, which has allowed them to become the frontrunners in their field,” said Lee Wild, head of equity strategy at investing platform Interactive Investor. “Vast financial resources mean they can continue to spend heavily on further research and development.”
If you think about how frequently you search on Google, order goods from Amazon or check your iPhone, it soon becomes apparent just how wired in these companies are to daily life all over the world.
“Throughout the years, Magnificent 7 companies have grown significantly in size, enjoying market dominance and significant brand power,” said Wild. “They also have global recognition and large loyal customer bases, which helps reinforce their growth credentials.”
That has translated into rapid earnings growth for these companies, which in turn has underpinned the kind of share price gains noted above.
The risks of investing in the Mag 7 Stocks
However, popular stocks bring risks with them, regardless of how large and successful they are.
“All stock markets experience some level of volatility, but technology shares can experience greater price movements given the sector’s growth potential,” said Wild.
Tech companies in particular often trade on high price/earnings multiples given the expectation that their business will grow at pace many years into the future, and this is especially true of the Mag 7.
“However, if growth is slower than expected, or something goes wrong, share prices can sharply fall,” said Wild.
He added that their global reach can expose these companies to legal and regulatory scrutiny. Last year, Alphabet won an antitrust lawsuit that had been brought against it claiming that Google had a monopoly over online search.
There are also geopolitical risks in operating such massive businesses in innovative fields, as the various blockers that both the US and China have tried to raise against Nvidia selling its most cutting-edge chips into the Chinese market.
“As companies grow larger, they might reach a scale whereby it becomes more difficult to maintain a level of high growth that investors have become accustomed to,” said Wild. “They might also become vulnerable to competition either from smaller, more nimble rivals within their sector, or from alternative technologies.”
Are the Mag 7 still magnificent?
This group of stocks started being referred to as the Magnificent 7 during the rise of AI and in the aftermath of the Covid pandemic.
But up until then, the most common grouping to refer to big tech stock market giants was ‘FAANG’ – standing for Facebook (now Meta), Amazon, Apple, Netflix (NASDAQ:NFLX) and Google (now Alphabet). These five garnered lots of hype in the years leading up to and, particularly, during the pandemic, but since then AI’s rise (and the stagnation of the work-from-home economy) has seen Microsoft, Nvidia and Tesla gain more attention, while Netflix has been slightly left behind.
A similar process might be underway at present. The Mag 7 are not the largest companies by market cap – semiconductor companies Broadcom (NASDAQ:AVGO) and Taiwan Semiconductor (NYSE:TSM), as well as Saudi Arabia’s state-owned oil company Saudi Aramco (TADAWUL:2222) – are all valued higher than Meta and Tesla as of 17 April.
Some investors discuss the ‘BATMMAAN’ stocks – Broadcom, Alphabet, Tesla, Meta, Microsoft, Amazon, Apple and Nvidia – or the ‘10 titans’, which adds Broadcom, Oracle (NASDAQ:ORCL) and Netflix to the Mag 7.
Additionally, Elon Musk’s SpaceX is expected to IPO at some point this year and recent reports suggest it could be worth more than Tesla or Meta when it lists. If so, that could prompt a reshuffle in how investors categorise the top tech stocks.
