How Have the Magnificent Seven Performed Compared to 2024?

After a blockbuster year for tech giants, 2025 has opened with sharp declines – and valuation multiples are signaling a shift in sentiment

The “Magnificent Seven” – Apple, Microsoft, Nvidia, Amazon, Alphabet (Google), Meta Platforms, and Tesla – are an unofficial cohort of the most dominant technology companies in the U.S. stock market. Each of these corporations commands a strategic moat in its sector, ranging from cloud services and AI chips to digital advertising and electric vehicles. With significant weightings in indices like the S&P 500 and Nasdaq 100, their performance often sets the tone for broader market sentiment.

Combined Market Cap and Systemic Impact

As of mid-April 2025, the combined market capitalization of the Magnificent Seven stands at approximately $14 trillion, down from a peak of nearly $17.6 trillion at the end of 2024. This represents a 20% contraction, largely driven by intensifying U.S.–China trade tensions and new semiconductor export restrictions, particularly affecting Nvidia. Despite this pullback, the group still represents close to 27% of the total market cap of the S&P 500, underlining its outsized influence. When these names drop, the broader market follows – a reality that portfolio managers and ETF allocators cannot ignore.

From Explosive Growth to a Broad-Based Correction

2024 was a banner year: Nvidia soared 171.3%, Meta gained 66.1%, Tesla jumped 62.5%, and Amazon added 44.4%. Even the more established players—Apple, Microsoft, and Alphabet—delivered strong double-digit returns. But 2025 has flipped the script. All seven stocks are in the red YTD, with Tesla down over 40%, Nvidia losing 24%, and the rest averaging 15–20% declines.

Valuation Multiples Reflect Market Repricing

The shift in sentiment is clearly evident in trailing P/E ratios. Elevated valuations in 2024, underpinned by strong AI and tech narratives, are now being repriced:

Broader Market Context

The S&P 500 is down approximately 9.9% YTD, while the equal-weighted version (RSP) has dropped only 6.7% – highlighting the disproportionate drag from the largest names. Meanwhile, the MSCI World ex-USA index has posted a +4.8% gain, suggesting a potential rotation away from U.S. mega-cap tech and into international equities.

Looking Ahead: Style and Geographic Rotation?

As real interest rates remain elevated and earnings growth expectations soften, 2025 may continue to favor value over growth, and non-U.S. equities over American tech giants. Institutional flows are already beginning to reflect this shift.

The message is clear: the equity market is re-evaluating the assumptions that propelled the Magnificent Seven to dominance. In 2025, they may no longer be quite so magnificent.