The group of high-profile tech stocks lags broader market gains, with valuations trailing peers like SpaceX and TSMC.
The S&P 500 and Nasdaq continue to climb, but the so-called Magnificent Seven stocks—AMZN, AAPL, GOOGL, META, MSFT, NVDA, and TSLA—are underperforming. These stocks, which drove much of the 2023 rally, now act as a drag on major indexes despite their market-cap dominance.
Recent valuations show SpaceX, Taiwan Semiconductor (TSM), and Broadcom (AVGO) surpassing Meta and Tesla in market weight. The shift highlights a rotation away from the once-dominant tech cohort, even as broader equities advance.
ARK Invest’s Cathie Wood added 3.3 million SpaceX shares on its IPO day, signaling confidence in alternative growth plays over the Magnificent Seven.