Magnificent Seven: What Are They And What's All The Hype About?

What are the Magnificent Seven stocks?

The Magnificent Seven (also known as the "Mag 7") are a group of seven major technology companies which have dominated the US stock market in recent years. The group comprises:

Each of the Magnificent Seven stocks are “mega-cap”, meaning they have a market capitalisation (total value of all shares) of over USD 200 billion, and are among the largest publicly traded companies in the world. Together, the seven stocks are the same size as the entire stock markets in the UK, Canada, and Japan combined.[1]

Thanks to their sheer size, some or all of the Mag 7 appear on the main US stock market indices – including the S&P 500, Nasdaq, and Dow Jones – as well as some global indices – such as MSCI World and the FTSE All-World. The group accounts for 30% of the S&P 500’s total market capitalisation of almost USD 50 trillion.[2] This means the performance of these tech stocks often sets the tone, not just for the technology sector, but for the US stock market and beyond.

In the investing context, due to their behemoth size and influence, the Magnificent Seven are widely seen as protectors and drivers of growth - particularly in the face of economic uncertainty.

Who coined the term “Magnificent Seven”?