After recently slipping behind Microsoft in terms of market capitalization weighting on the Nasdaq, Nvidia now eclipses the software and cloud giant. Accounting for 8.5% of the tech-heavy index, Nvidia tops Microsoft's 7.8% while Apple keeps its crown, making up 8.9% of the Nasdaq.
Meanwhile, Amazon.com has grown its lead over Alphabet. Amazon accounts for 6.3% of the Nasdaq, surpassing the Google parent's 5.8%.
In other news on the Magnificent Seven stocks, Tesla made the latest list of new buys by the best mutual funds — marking its first time on this screen since August of 2023. But as it continues to live below its 50-day line, Tesla's Mag 7 card comes under threat. Accounting for 2.9% of the Nasdaq, Tesla holds just slight edge over Broadcom, which makes up 2.8% of the index.
Meta Platforms, which topped earnings amid an AI push, makes up 4.7% of the index.
IBD's recommended market exposure level stands at 60%-80%. The five-tiered system, a key part of The IBD Methodology, helps investors stay protected and profitable with sound risk management.
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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 |
|---|---|---|---|
| Apple | 9.1 | 89 | |
| Nvidia | 8.5 | 98 | |
| Microsoft | 7.8 | 61 | |
| Amazon.com | 6.3 | 96 | |
| Alphabet Class C | 5.9 | 95 | |
| Alphabet class A | 5.8 | 95 | |
| Meta Platforms | 4.7 | 98 | |
| Tesla | 2.9 | 82 | |
*As of Feb. 13 |
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Magnificent Seven Stocks News & Analysis
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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.
