From Nasdaq:

The “Magnificent Seven” stocks, including Apple, Microsoft, Alphabet, Amazon, NVIDIA, Meta Platforms, and Tesla, now make up nearly 30% of the S&P 500 index and contributed over 62% of the S&P 500’s total return in 2023. In 2024, these stocks continue to drive over 80% of the index’s rise, despite expert predictions of a broadening market rally.

These companies have benefited from the AI hype in 2023, but their performances have diverged in 2024. Nvidia and Meta are leading the group, while Tesla lags significantly. Meta’s financial results were well-received, leading to a more than 20% increase in its shares, while Tesla’s earnings were down almost 46% and its stock lost 26% of its value this year.

NVIDIA is yet to announce its results but its stock has appreciated by 42% in 2024. The other giants have revealed aggressive AI investments, contributing to their performance. The Roundhill Magnificent Seven ETF and the Vanguard Mega Cap Growth ETF both provide exposure to these stocks, while the Invesco NASDAQ 100 ETF covers the growth stocks in the US.

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