Magnificent 7 Stocks: Your Guide to Investing

By Matthew DiLallo – Updated Jun 1, 2025 at 9:28 PM | Fact-checked by Frank Bass

Key Points

Magnificent Seven stocks, including Apple and Amazon, delivered strong returns over the past decade due to tech trends like cloud computing and AI.
In early 2025, these stocks fell by nearly 15% due to market uncertainty, though past decade returns were high.
Investors considering these stocks face risks like high valuations and potential regulatory challenges.

The "Magnificent Seven" describes the seven biggest technology-focused companies that have led the market's returns in recent years. Bank of America (BAC -0.81%) analyst Michael Hartnett coined the phrase based on the Western film with the same name (originally made in 1960 and remade in 2016).

Loading paragraph...

An infographic defining and listing the "Magnificent Seven" stocks along with their respective logos. — Image source: The Motley Fool.

Loading paragraph...

Ticker Information Table
Company name	Company ticker	Market cap	Sector
Apple	NASDAQ:AAPL	$3.9 trillion	Information Technology
Alphabet	NASDAQ:GOOG	$3.0 trillion	Communication Services
Amazon	NASDAQ:AMZN	$2.4 trillion	Consumer Discretionary
Meta Platforms	NASDAQ:META	$1.8 trillion	Communication Services
Nvidia	NASDAQ:NVDA	$4.4 trillion	Information Technology
Microsoft	NASDAQ:MSFT	$3.8 trillion	Information Technology
Tesla	NASDAQ:TSLA	$1.5 trillion	Consumer Discretionary

Data as of Oct 22, 2025.

Loading paragraph...

Loading paragraph...

For example, the Roundhill Magnificent Seven ETF (MAGS -0.46%) focuses solely on investing in the Magnificent Seven. Alternatively, the Invesco QQQ Trust (QQQ -0.96%) focuses on the tech-heavy Nasdaq-100. The Magnificent Seven were all among its top 10 holdings in mid-2025 and totaled almost 40% of its total assets.

Loading paragraph...

Asset

An asset is a resource used to hold or create economic value.

Loading paragraph...

The S&P 500 Index

The 500 largest companies make up this bellwether index.

Top 3 S&P 500 Index Funds to Buy in 2025

Multiple index funds track the S&P 500. Which ones are the best investments for you?

What Is the Nasdaq Stock Exchange?

The second-largest stock exchange in the world focuses on technology, listing over 3,000 securities.

Investing in Metaverse Stocks

This digital, 3D world can present real opportunities for investors.

The bottom line on the Magnificent Seven

The Magnificent Seven stocks have delivered magnificent returns over the years. These tech-focused companies have capitalized on many of the biggest technological growth trends, enabling them to grow rapidly and produce strong returns for their investors.

While they're in excellent positions to continue growing rapidly in the future, they're not without risk. Investors must understand the risks before loading their portfolios with these seven stocks.

Loading paragraph...

Loading faq...

About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bank of America is an advertising partner of Motley Fool Money. Matt DiLallo has positions in Alphabet, Amazon, Apple, Meta Platforms, and Tesla and has the following options: short August 2025 $250 calls on Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.