What are the Magnificent 7 stocks?

Since the stock market’s inception, investors have attempted to group stocks they believe offer the greatest potential for growth. When these groupings become popular, they often get a nickname. While the “Nifty 50,” a collection of 50 blue-chip stocks, was all the rage in the 1960s and '70s, big tech’s Magnificent 7 make headlines now. Find out which companies are in the Magnificent 7 and the potential pros and cons of investing in them.

What are the Magnificent 7 stocks?

The Magnificent 7 stocks are a group of large-cap companies (corporations with large market capitalizations determined by the number of shares times each share’s value) in the technology sector, including Alphabet (parent company of Google), Amazon, Apple, Meta Platforms (parent company of Facebook and Instagram), Microsoft, Nvidia, and Tesla. Due to their size and performance, these stocks accounted for roughly one-third of the S&P 500’s total market capitalization at the end of 2024. They also made up a significant percentage of the market’s total 2024 returns.

Why are they called the Magnificent 7?

They’re called the Magnificent 7 because they are 7 of the best-performing companies’ growth stocks in the tech industry. The name is a nod to the classic 1960 Western film of the same name.

What stocks are in the Magnificent 7?

The Magnificent 7 consists of stocks from 7 of the world’s most well-known tech companies. They all have market capitalizations of about $1 trillion or more, with a few around $3 trillion as of March 2025. In alphabetical order, here are the companies that comprise the Magnificent 7 stocks.

Alphabet

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As the ticker hints, Alphabet is the parent company of Google. The company changed its name from Google to Alphabet as they ventured outside of the search engine business. Alphabet also owns Fitbit, the fitness tracker, Waze, the traffic and navigation app, and YouTube, the video-sharing site, among others. Why are there 2 tickers for 1 company? GOOGL shareholders get voting rights, while GOOG shareholders don’t, but there’s not much difference beyond that. Despite having the lowest 10-year returns of the Magnificent 7, it still has grown about 500% from March 3, 2015, to March 3, 2025, according to Fidelity data.

Amazon

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What was once an online bookseller is now a buy-anything-and-everything company. But it’s also a streaming service (Amazon Prime), a cloud computing platform (AWS), and a supermarket chain (Whole Foods), to name a few of its other businesses. The stock has grown over 900% from March 3, 2015, to March 3, 2025, according to Fidelity data.

Apple

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The first of the Magnificent 7 stocks to go public, way back in 1980, it’s now one of the most valuable companies in the world, often in the No. 1 spot. While the company still makes computers as they did in their early days, they also make phones, smartwatches, and tablets. Apple also has a foothold in the music space with its song-streaming service, Apple Music, song-recognition app Shazam, and Beats, a headphones, earbuds, and speaker maker. Apple stock has surged about 600% from March 3, 2015, to March 3, 2025, according to Fidelity data.

Microsoft

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It’s the company behind computer software many people use at home or in the workplace. It’s also the owner of LinkedIn. Microsoft's stock has jumped about 800% from March 3, 2015 to March 3, 2025, though it's the only stock in the Magnificent 7 that has a negative rate of return from March 3, 2024 to March 3, 2025.

Meta Platforms

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The social media juggernaut, which started out as Facebook, changed its name in 2021 after it had already acquired photo-sharing app Instagram and messaging app WhatsApp. Its stock has seen steady growth since the company went public in 2012, with a return of more than 700% from March 3, 2015, to March 3, 2025, according to Fidelity data.

NVIDIA

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Tesla

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It’s the only company in the Magnificent 7 that many consider to be in the tech sector despite being an automaker, producing electric vehicles. Tesla also produces solar roofs and home energy generators. It surged about 2,000% from March 3, 2015 to March 3, 2025, though it's shed some value in the beginning of 2025.

Historical performance of Magnificent 7 stocks

The chart below shares the 1-, 5-, and 10-year returns for the Magnificent 7 companies’ stocks, based on Fidelity data from March 3, 2025.

Advantages of Magnificent 7 stocks

There are a number of factors driving the Magnificent 7 companies’ stock performances, which might make them attractive investments to you.

Financial strength

The Magnificent 7 companies have ample operating resources, a track record of revenue growth, and typically strong earnings (aka profits), which have helped them continue their general upward trajectory.

Market leadership

The Magnificent 7 are widely recognized as leaders in tech. These companies tend to have significant market share, customer loyalty, and insulation from new competitors.

Global operations

Each of the Magnificent 7 operates in multiple countries, which helps them diversify revenue sources. It also positions them to benefit from international growth, especially in developing markets that could be growing faster than the US market.

Disadvantages of Magnificent 7 stocks

Investing in any security, including the Magnificent 7 companies’ stocks, carries risk. There are potential drawbacks specific to these stocks too. Here’s what you should know before investing in the Magnificent 7 companies’ stocks.

Assumed growth isn’t guaranteed

The companies within the Magnificent 7 are so large and have grown, but it may be more difficult to double in value from $1 trillion to $2 trillion than from $1 billion to $2 billion. Investing solely in these mega-cap stocks (companies with the highest market value of $200 billion or more) might mean missing out on smaller companies that offer more opportunities for growth.

Premium prices

Many investors see the Magnificent 7 as a basket of possibly overvalued stocks. That could be because these valuations assume future growth and bake that into the price. If growth falls short of high investor expectations, it could hurt stock values.

Portfolio concentration

If you’re invested in large-cap growth funds (mutual funds or exchange-traded funds [ETFs] that invest in high-value companies that people believe will grow faster by revenue and/or earnings than other companies), there’s a pretty good chance you’re already exposed to some, if not all, of the Magnificent 7 company stocks. Adding additional shares of these companies could lead to portfolio concentration—and elevated risk exposure. In other words, be careful not to put all your eggs in one basket.

How to buy Magnificent 7 stocks

If you’re looking to invest in the Magnificent 7, there are a number of ways to add them to your portfolio.

• Buy individual stocks: You could do this within a brokerage account, retirement account, or other investment account that allows you to purchase stocks.
• Buy shares of an index fund: The Magnificent 7’s stocks are included in a variety of common market indexes (groups of securities that share a feature) like being high-value companies or belonging to a certain sector, including the S&P 500 and Nasdaq Composite. Buying into a fund that tracks one of these indexes can give you exposure to the Magnificent 7 stocks, in addition to the broad market. While many index funds charge fees, there are some that don’t charge an expense ratio, the percentage of your overall investment that goes to the fund manager.
• Buy shares of a Magnificent 7 ETF: A number of ETFs (collections of securities around a strategy, theme, or exposure) that hold shares in the Magnificent 7’s stocks have sprung up in recent years. These funds offer an easy way to add the Magnificent 7’s stocks to your portfolio, but you’ll be on the hook for the fund’s expense ratio and other fees, if any.