Does it seem like the S&P 500 Magnificent Seven stocks can do no wrong? Then it might make sense to look at the stocks they're picking themselves.
The Magnificent Seven separately own stakes in 19 publicly traded stocks, including SoundHound AI, Arm Holdings and Corning, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. The positions are revealed in arcane financial disclosures.
And so far, the Magnificent Seven's portfolio is pretty magnificent, too. Shares of the holdings traded all year are up an average of 28.3%. That easily tops the S&P 500's 23.7% rise in that time. Their batting average is stellar, too. More than 70% of the positions are up this year so far.
The S&P 500 Magnificent Seven's Dominance Rises
Surging stock prices of the Magnificent Seven, Nvidia, Apple, Microsoft, Amazon.com, Alphabet, Tesla and Meta Platforms, are making them even more dominant in the S&P 500.
Those seven stocks account for roughly a third of the S&P 500's value. And many are using part of their enormous financial reserves to invest in smaller, promising firms.
Nvidia has hit upon one of the best investments. The AI giant owns a stake in SoundHound AI, which has seen its shares surge nearly 200% just this year. The stock's impressive run gives SoundHound AI an RS Rating of 96. And while analysts think profit at the company, which provides AI-powered customer support, will fall 29% this year, it's expected to surge 36% in 2025.
Nvidia also took a position in chip designer Arm Holdings. Shares are up more than 70% this year.
Other Mag Seven Companies Get Into The Game
Nvidia's portfolio makes sense as it tries to protect its AI perch. But other Mag Seven plays are making bets, too.
Amazon, for instance, holds a position in quantum computing firm, IonQ. Shares are up 100% just this year. That gives the stock a perfect 99 RS Rating. Profits, though, are still elusive underscoring the speculative nature of many smaller stocks in these portfolios.
Case in point is Meta's investment in Silvergate Capital. The digital currency firm's stock is up 77% this year. But the stock doesn't trade on a major U.S. market.
But sometimes the Magnificent Seven's holdings work out extraordinarily well. Microsoft, for instance, owns a position in Meta. And now that company is worth $1.4 trillion.
Sometimes, yes, it seems like these stocks are too good to be true.
Positions By Magnificent Seven Companies
| Company owned | Position | Symbol | YTD % ch. |
|---|---|---|---|
| Nvidia | SoundHound AI | SOUN | 192.0% |
| Amazon.com | IonQ | IONQ | 103.6% |
| Meta | Silvergate Capital* | SICP.Q | 73.3% |
| Nvidia | Arm Holdings | ARM | 71.2% |
| Microsoft | Meta Platforms | META | 56.6% |
| Apple | Corning | GLW | 52.5% |
| Amazon.com | Twilio | TWLO | 27.1% |
| Amazon.com | Air Transport Services Group | ATSG | 24.8% |
| Alphabet | Lyft | LYFT | 15.4% |
| Alphabet | Xunlei Limited | XNET | 13.6% |
| Alphabet | Uber Technologies | UBER | 12.6% |
| Microsoft | Cloudflare | NET | 10.8% |
| Microsoft | Nano Dimension | NNDM | -14.6% |
| Microsoft | Vertical Aerospace | EVTL | -34.0% |
| Microsoft | PLAYSTUDIOS | MYPS | -36.2% |
| Nvidia | Recursion Pharmaceuticals | RXRX | -38.1% |
| Microsoft | Wejo Group* | WEJO.F | -50.0% |
| Nvidia | Serve Robotics | SERV | N/A |
| Microsoft | Cyren* | CYRN.Q | N/A |
