Magnificent 7 Stocks: Your Guide to Investing

By Matthew DiLallo – Updated Nov 1, 2025 at 1:54 PM | Fact-checked by Robin Hartill, CFP

Key Points

Magnificent Seven stocks are seven of the biggest technology-related companies in the world.
These stocks trade at premium P/E ratios due to their robust returns and growth potential.
The Magnificent Seven group has delivered a 38.7% average annual total return in the past decade.

The "Magnificent Seven" describes the seven biggest technology-focused companies that have led the market's returns in recent years. Bank of America (BAC +0.79%) analyst Michael Hartnett coined the phrase based on the Western film with the same name (originally made in 1960 and remade in 2016).

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

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Apple (NASDAQ:AAPL)	$4.0 trillion	0.38%	Technology Hardware, Storage and Peripherals
Alphabet (NASDAQ:GOOG)	$3.4 trillion	0.29%	Interactive Media and Services
Amazon (NASDAQ:AMZN)	$2.6 trillion	0.00%	Multiline Retail
Meta Platforms (NASDAQ:META)	$1.6 trillion	0.32%	Interactive Media and Services
Nvidia (NASDAQ:NVDA)	$4.9 trillion	0.02%	Semiconductors and Semiconductor Equipment
Microsoft (NASDAQ:MSFT)	$3.8 trillion	0.64%	Software
Tesla (NASDAQ:TSLA)	$1.5 trillion	0.00%	Automobiles

Data as of Nov 3, 2025.

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MAG 7 returns 2025 — Image source: YCharts.

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For example, the Roundhill Magnificent Seven ETF (MAGS +1.51%) focuses solely on investing in the Magnificent Seven. Alternatively, the Invesco QQQ Trust (QQQ +0.57%) focuses on the tech-heavy Nasdaq-100. The Magnificent Seven were all among its top 10 holdings in late 2025 and totaled almost 45% of its total assets.

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Asset

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

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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.

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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.

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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 January 2026 $265 calls on Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, 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.