Apple has just ceded its throne to Nvidia in terms of market capitalization weighting on the Nasdaq. Accounting for 8.9% of the tech-heavy index, Nvidia has eclipsed Apple's 8.7%. Now as the iPhone maker descends to test its 200-day line, Microsoft is on the rise, looking to step into the No. 2 spot.
Microsoft makes up 8.5% of the Nasdaq, just shy of overtaking Apple.
Meanwhile, Alphabet and Amazon.com continue to butt heads. Amazon accounts for 6.3% of the Nasdaq, slightly edging out Alphabet's 6.2%.
In other news on the Magnificent Seven stocks, Tesla has firmly established its lead over non-Mag 7 member Broadcom after the two tech titans did battle on the market-cap front last year. Tesla stock now accounts for 3.4% of Nasdaq, topping Broadcom's 2.9%.
Meta Platforms rounds out the Mag 7 group, accounting for 4.1% of the index. The social media giant remains right around its all-time high while President Donald Trump puts a ban on rival TikTok on hold.
IBD's recommended market exposure level has jumped to 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 | 9.2 | 99 | |
| Apple | 8.6 | 84 | |
| Microsoft | 8.5 | 88 | |
| Amazon.com | 6.3 | 98 | |
| Alphabet Class C | 6.3 | 98 | |
| Alphabet class A | 6.2 | 99 | |
| Meta Platforms | 4.1 | 99 | |
| Tesla | 3.4 | 92 | |
*As of Jan. 23 |
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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 phrase Magnificent Seven Stocks: Alphabet, Apple, Amazon, Meta Platforms, 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 weightings 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.
