The "Magnificent Seven" stocks, driven by AI boom and reduced rates, surged in 2024.

From Nasdaq: 2024-12-17 10:00:00

The “Magnificent Seven” stocks, driven by the AI boom and reduced rates, have surged this year. Roundhill Magnificent Seven ETF (MAGS) is up 71%, with four stocks hitting new highs and NVIDIA up over 170%. The combined market cap of these stocks surpassed $18 trillion for the first time.

The AI boom is fueling stock rallies, with a generative AI market expected to reach $1.3 trillion by 2032. Lower rates benefit tech stocks borrowing for growth. Citi sees Magnificent Seven stocks as a defensive play amid market volatility. These tech giants have superior fundamentals compared to the S&P 500.

Roundhill Magnificent Seven ETF (MAGS) offers equal-weight exposure to the Magnificent Seven stocks and has gathered $1.5 billion in assets. Other ETFs like FNGS, MGK, XLG, and OEF provide different exposures to these stocks. Analysts predict more bullish gains for the S&P 500 in 2025, making these ETFs attractive investment options.



Read more at Nasdaq: Mag 7 ETFs Look Unstoppable Heading Into 2025