The Seven

We thought it was all over. Down more than 30% from the January highs, the Magnificent Seven had finally succumbed to gravity. Valuations were stretched, the concentration in the S&P 500 index was too high, and the exodus of assets from the U.S. was in full swing. Even Nvidia had lost almost half its value.

Then came the great rebound. From their April lows, Apple, Microsoft, Alphabet, Amazon, Meta, Tesla, and Nvidia came roaring back and reclaimed their all-time highs last week. Their combined market capitalization now exceeds $12 trillion, which is larger than the GDP of Germany, the UK, and France combined.

Since 2011, these so-called mega-caps have accounted for more than 35% of all S&P 500 gains. Since 2023, that figure has jumped to over 40%, thanks largely to Nvidia’s meteoric 650% rally. Historically, markets rarely remain this top-heavy for long. Yet the reality is that these companies are still delivering growth on a scale few others can match.

AI spending is pouring rocket fuel on Nvidia, Microsoft, and Meta. Amazon’s cloud business continues to hum, Alphabet is—well, Google, and Apple’s brand loyalty is as unshakable as ever. Only Tesla appears vulnerable, given Elon Musk’s best efforts to shoot himself in the foot. Thankfully, Palantir, up 134% this year, looks poised to take its place and keep the party going.