As Nvidia navigates a rocky road and Wall Street wonders what's next, the artificial intelligence juggernaut has just slipped behind Microsoft in terms of market capitalization weighting on the Nasdaq. Microsoft now accounts for 9.2% of the tech-heavy Nasdaq, topping Nvidia's 9%.
Once the market-cap king, Apple has fallen to third place, currently making up 7.8% of the Nasdaq.
Amazon.com, which now accounts for 5.8% of the tech-heavy index, remains ahead of Alphabet. The market-cap weighting for Google stock stands at 5.4%.
Social media and AI giant Meta Platforms, which broke out on June 2 and remains in buy range, holds sixth place among Magnificent Seven members, making up 4.6% of the Nasdaq.
Meanwhile, continuing its seesaw market-cap battle with non-Mag 7 member Broadcom, Tesla has once again slipped in the rankings. Just hammered on news of a feud between Elon Musk and President Donald Trump, Tesla stock has dropped to 2.4% of the Nasdaq while Broadcom now accounts for 3.2% of the index.
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.
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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 |
|---|---|---|---|
| Microsoft | 9.2 | 92 | |
| Nvidia | 9 | 97 | |
| Apple | 7.9 | 71 | |
| Amazon.com | 5.8 | 92 | |
| Alphabet Class C | 5.5 | 88 | |
| Alphabet class A | 5.4 | 88 | |
| Meta Platforms | 4.6 | 96 | |
| Tesla | 2.4 | 70 | |
*As of June 5 |
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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.
