- The Magnificent 7 are diverging in 2025: AI-linked names like Nvidia and Microsoft are up, while Apple and Tesla lag.
- Some analysts now swap in Broadcom for Tesla, reflecting the chipmaker’s rise in AI infrastructure.
- The S&P 500 and Nasdaq just posted their best September in 15 years, underscoring investor appetite for tech leadership.
- Investors are asking: Will leadership stay concentrated, or broaden to groups like the “Terrific 20” and “Forgotten 50”?
What are the Magnificent 7?
The Magnificent 7 is shorthand for a small group of mega-cap tech stocks — Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla — that have driven much of the S&P 500’s returns in recent years.
However, in 2025, some analysts have suggested Broadcom (AVGO) should replace Tesla (TSLA), given the latter’s struggles and former’s rise as an AI infrastructure leader. Let’s breakdown the top players.
This article is a journalistic opinion piece which has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Nvidia (NDAQ:NVDA): The AI standard-bearer
YTD trend: Still the market’s bellweather for artificial intelligence. Nvidia has extended gains through 2025 on hyperscaler demand for GPUs and data-centre expansion.
Catalysts: Cloud capex, AI software adoption and sovereign AI projects.
Risks: High valuation; potential slowdown once AI infrastructure spending levels off.
Nvidia’s Q2 fiscal 2026 results announced in August showed revenue hitting US$46.7 billion, with its data center business rising sharply and showing strong demand for its AI offerings.
The company also authorized a US$60 billion share repurchase, reinforcing confidence in its cash flow prospects.
Notably, Nvidia’s strategic collaborations continue to expand, including a recent OpenAI deployment of 10 gigawatts of NVIDIA systems.
Microsoft (NDAQ:MSFT): Cloud and Copilot
YTD trend: Strong performance, buoyed by continued Azure growth and integration of AI assistants across Office and Windows.
Catalysts: AI-powered “Copilot” monetization, steady enterprise contracts.
Risks: Antitrust scrutiny in the US and EU; margin pressure from infrastructure spending.
Microsoft has continued to deliver solid results in 2025, with its Q3 fiscal earnings beating expectations on the back of strong cloud and enterprise growth.
Beyond numbers, Microsoft has been active in expanding AI and strategic partnerships — from renewing its NFL collaboration to integrate AI into fan engagement to teaming up with BlackBerry in vehicle software.
The company also announced a quarterly dividend increase in September, signaling confidence in long-term cash flows. With Copilot AI tools rolling out across Windows and Office, Microsoft remains one of the core “Magnificent 7” players riding the AI investment wave.
Meta Platforms (NDAQ:META): AI ads rebound
YTD trend: Shares have surged as ad revenue recovers and AI targeting tools improve.
Catalysts: Continued monetization of Reels, Threads growth, AI-driven advertising.
Risks: Regulatory overhang on data privacy and misinformation.
Meta’s Q2 2025 results showed continued strength in digital advertising, supported by investments in AI-driven targeting and product innovation.
Beyond earnings, the company has been active in building its AI infrastructure, including a collaboration with CrowdStrike to set new performance benchmarks for AI evaluation. Meta also moved to acquire AI chip startup Rivos, underscoring its ambitions to control more of the hardware stack that powers its services.
With Threads expansion and continued Reels monetization, Meta remains a central “Magnificent 7” name, though regulatory scrutiny and platform risks still linger.
Alphabet (NDAQ:GOOG): AI bets and regulatory pressure
YTD trend: Gains muted compared to peers; Google Cloud growth slows, while AI (Gemini) launches lag rivals.
Catalysts: AI integration across search, YouTube and Workspace.
Risks: Antitrust lawsuits in the US and EU; monetization uncertainty for AI search.
Alphabet continues to show its weight among the Magnificent 7. In September, it became one of only a handful of companies to join the US$3 trillion market-cap club, underscoring investor confidence in its AI and advertising businesses.
Earlier in the summer, Q2 results lifted US markets, showing how much Alphabet’s earnings sway global indices.
Beyond financials, the company announced in March that it would acquire cloud security firm Wiz, reinforcing its push to secure Google Cloud’s position in enterprise infrastructure.
Alphabet remains a bellweather for advertising and cloud growth, though its AI integration across search and YouTube faces regulatory scrutiny on both sides of the Atlantic.
Amazon (NDAQ:AMZN): Balancing retail and AI
YTD trend: Moderate growth as e-commerce stabilizes post-pandemic; AWS remains core profit driver.
Catalysts: AI services layered onto AWS; continued logistics efficiencies.
Risks: Rising competition in cloud; consumer spending sensitivity to rates.
Amazon remains a core Magnificent 7 stock, balancing its retail engine with tech investments. The company recently announced the return of Prime Big Deal Days on October 7–8 to kick off the holiday season, while its share price helped lift the S&P 500 to record highs in early September.
Beyond retail, Amazon Web Services (AWS) continues to expand its AI footprint, highlighted by a partnership with Twelve Labs to advance video search with artificial intelligence.
These moves underscore Amazon’s diversified model, though ongoing legal and regulatory challenges, such as a recent US$2.5 billion settlement over Prime practices, remind investors of the risks that come with its scale.
Apple (NDAQ:APPL): Growth questions emerge
YTD trend: Shares are down double-digits year-to-date, underperforming peers.
Catalysts: Next iPhone cycle, wearables and AI features in iOS.
Risks: Slowing iPhone demand, supply chain reliance on China and regulatory risk in EU app markets.
Apple has lagged many of its Magnificent 7 peers in 2025, with shares down double-digits mid-year as analysts raised concerns over slowing iPhone demand.
Jefferies cut its rating in September on what it called “excessive expectations” for the latest iPhone cycle. Other analysts have speculated the stock could be nearing a technical breakout citing Apple’s services growth as a stabilizing force.
One thing’s for certain: Even when underperforming, Apple’s market weight makes it a key driver of tech sentiment.
Tesla (NDAQ:TSLA): From core member to contested seat
YTD trend: Down sharply in 2025 as EV competition intensifies, especially from Chinese automakers.
Catalysts: Cybertruck scaling and energy storage division.
Risks: Margin compression, global EV price wars and questions about governance.
Tesla remains one of the most polarizing names in the Magnificent 7. In early October, the company reported its Q3 2025 production and delivery numbers, highlighting growth in energy deployments alongside persistent margin pressures.
Analysts remain divided: JPMorgan recently revised its Tesla price target down to US$150 amid rising Chinese competition, while market volatility has seen the stock swing sharply — surging more than 35 per cent during one September rally.
With production expanding but profitability under pressure, Tesla’s place in the Magnificent 7 is increasingly debated as a new star rises…
Broadcom (NDAQ:AVGO): The would-be eighth
YTD trend: Market cap expansion driven by AI networking chips and custom silicon contracts.
Catalysts: AI data center infrastructure; VMware integration.
Risks: Cyclical semiconductor demand; regulatory scrutiny of acquisitions.
Broadcom has emerged as the frontrunner to potentially bump Tesla out of the Magnificent 7, thanks to its expanding role in AI infrastructure.
Analysts increasingly see Broadcom as part of a “Magnificent 8,” citing its exposure to AI growth alongside Nvidia. With Wall Street price targets being lifted — including a KeyBanc revision to US$420 on AI demand momentum — Broadcom’s ascent reflects both its strategic positioning and investor confidence in the AI buildout cycle.
In late September, Lloyds Banking Group extended its strategic partnership with Broadcom to accelerate digital transformation projects. The company also recently showcased its co-packaged optics technology, underscoring its push into high-performance networking hardware for data centers.
Looking beyond the 7
With the S&P 500 and Nasdaq enjoying their strongest September in 15 years, attention is turning to whether market leadership will broaden.
Barron’s has coined the “Terrific 20” and the “Forgotten 50” as possible heirs to the Mag-7’s dominance. The “Terrific 20” includes a wider set of large-cap names in semiconductors, software and industrials that analysts believe could drive the next leg of US equity gains.
By contrast, the “Forgotten 50” reflects mid-sized growth companies that were overshadowed by the mega-cap rally but now present valuation opportunities as capital rotates beyond the top tier.
For retail investors, the takeaway is that market concentration may ease. Instead of seven names powering the indices, a broader group of 20–50 stocks could share leadership, spreading risk but also requiring more selectivity.
For Stockhouse readers, that means looking beyond the Magnificent 7 headlines to consider adjacent themes — from semiconductor suppliers to industrial automation and clean energy infrastructure — where growth could accelerate in the coming cycle.
Join the discussion: Find out what investors are saying about the Magnificent 7 stocks on Stockhouse’s stock forums and message boards.
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