Mag 7 makes a strong comeback, except for Apple
Since May, the US stock market has rebounded by 7%, with the Mag 7 contributing more than two-thirds of the increase. The Mag 7 list has been updated, with Broadcom replacing Apple, whose stock price has continued to decline. The market capitalization of the seven companies—NVIDIA, Microsoft, Meta, Broadcom, Amazon, Tesla, and Alphabet—has increased by $2.4 trillion. Despite high valuations, pessimists believe the rebound is hard to sustain, while optimists argue that large tech stocks will lead the market
Since May, the U.S. stock market has rebounded by 7%, with the Mag 7 contributing more than two-thirds of the increase. Excluding the Mag 7, the U.S. stock market has only risen by 3% since May.
It is noteworthy that the Mag 7 list has quietly shuffled, with Broadcom replacing Apple, whose stock price continues to decline. During this period, NVIDIA, Microsoft, Meta, Broadcom, Amazon, Tesla, and Alphabet collectively added $2.4 trillion in market capitalization.
Except for Tesla, the appeal of these tech stocks remains strong, characterized by high entry barriers, high free cash flow, and robust growth. Despite their high valuations (with the exception of Alphabet, the other companies are significantly priced at a premium relative to the U.S. stock market), it is difficult to find superior companies of similar scale.
In this regard, pessimists believe that the brief rebound is unlikely to last; while optimists argue that large tech stocks provide market leadership, and the performance of the Mag 7 may serve as a barometer for broader risk sentiment.
