With yet another earnings beat under its belt, artificial intelligence juggernaut Nvidia has pushed aside Apple for supremacy in market capitalization weighting on the Nasdaq. Nvidia stock commands 9.5% of the tech-heavy index, topping the 9.5% weighting for Apple stock. Microsoft comes in third, account for 8.4%.
Meanwhile, Alphabet has edged past Amazon.com. Google stock makes up 5.9% of the Nasdaq, slightly edging out Amazon's 5.8% weighting.
In other news on the Magnificent Seven stocks, Tesla has managed to create more distance with non-Mag 7 member Broadcom. After weeks in a dead heat, Tesla stock now accounts for 3% of Nasdaq. Broadcom, which led this month's list of new buys by the best mutual funds, makes up 2.1%.
Meta Platforms — Monday's IBD Stock Of The Day — rounds out the group, accounting for 3.9% of the index.
IBD's recommended market exposure level currently stands at the highest-possible 80%-100%. The five-tiered system, a key part of The IBD Methodology, helps investors stay protected and profitable with sound risk management.
What Percentage Of Nasdaq Are The Magnificent Seven Stocks?
Here are the current individual market cap weightings of Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia and Tesla. The weightings will, of course, change as their market caps fluctuate.
| Company | Symbol | Market Cap Weighting (%)* | Comp Rating |
|---|---|---|---|
| Nvidia | 9.8 | 97 | |
| Apple | 9.5 | 87 | |
| Microsoft | 8.4 | 66 | |
| Alphabet Class C | 5.9 | 90 | |
| Alphabet class A | 5.9 | 90 | |
| Amazon.com | 5.8 | 93 | |
| Meta Platforms | 3.9 | 95 | |
| Tesla | 3 | 88 | |
*As of Nov. 20 |
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What Are The Magnificent Seven Stocks?
Just as Wall Street moved on from the Nifty 50 in the 1970s as the term's popularity and usefulness waned, the so-called FANG or FAANG stocks have lost their bite. Replacing them in the lexicon du jour is the Magnificent Seven Stocks: Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia and Tesla.
From GOOGL, AAPL and AMZN to META, MSFT, NVDA and TSLA, the Magnificent Seven stocks account for around half of the weighting of the Nasdaq.
Unlike the price-weighted Dow Jones Industrial Average, the Nasdaq composite and S&P 500 indexes are market-capitalization weighted.
As a result, the combined market caps of the Magnificent Seven stocks have a disproportional influence on the Nasdaq composite and Nasdaq 100.
To help address this issue, the Nasdaq rebalanced the index on July 24. That reduced the individual weighting of the Magnificent Seven stocks. But the rebalancing simply changed the total weighting of these seven megacaps from over 50% to nearly 50%.
In short, the Nasdaq 100 remains heavily concentrated on these megacap growth stocks.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
