The seven darling companies that some investors and funds like to invest in are known collectively as the “Magnificent Seven.”
There is even an ETF with the ticker symbol MAGS that has concentrated exposure to these seven companies.
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- Apple Inc. (AAPL)
- NVIDIA Corporation (NVDA)
- Microsoft Corporation (MSFT)
- Amazon.com, Inc. (AMZN)
- Alphabet Inc. (GOOGL)
- Meta Platforms, Inc. (META)
- Tesla, Inc. (TSLA)
- More Fun Facts
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The Magnificent Seven stocks are listed below in order of market capitalization:
AAPL – Apple ($3.2 trillion)
MSFT – Microsoft ($2.9 trillion)
NVDA – NVIDIA ($2.8 trillion)
AMZN – Amazon ($2.0 trillion)
GOOGL – Alphabet ($2.0 trillion)
META – Meta Platforms ($1.4 trillion)
TSLA – Tesla ($758 billion)
Market capitalization is the total outstanding shares multiplied by the share price.
Apple, NVIDIA, and Microsoft have been fluctuating for first place as the most valuable company, with all three claiming that title in recent memory.
All seven companies are in the S&P 500 and the Nasdaq 100.
This is not to say that the list might not change in the future.
Currently, these companies are recognized for their impact on the broader market due to their substantial market capitalization and strong growth trajectories.
Apple Inc. (AAPL)
Sector: Technology
What they do:
They make phones.
Apple makes iPhones, iPads, Mac computers, and watches.
Fun Fact: Apple is the first company to hit a market cap of 1 trillion in August 2020 and the first to reach $3 trillion in 2023.
It is considered the most valuable company, with the largest market cap at $3.75 trillion.
NVIDIA Corporation (NVDA)
Sector: Technology
What they do: They make chips.
NVIDIA makes graphics processing units (GPUs) for gaming, data centers, and artificial intelligence applications.
Its GPUs are critical for AI development and high-performance computing.
Fun Fact: The founders Jensen Huang, Chris Malachowsky, and Curtis Priem chose the letter “N” to stand for “Next Version,” and the rest of the name is derived from the Latin root “invidia,” which means “envy.”
The correct way to spell NVIDIA is to spell it in all caps, according to their logo guidelines).
Why?
It is believed to be for branding and marketing purposes.
Microsoft Corporation (MSFT)
Sector: Technology
What they do: They make Windows.
Microsoft makes the Windows operating systems, Office productivity software, and Azure cloud platform.
Fun fact: In Microsoft Excel 97, the quirky engineers embedded a flight simulator-type feature into the spreadsheet that can be accessed by a sequence of obscure commands (known as an Easter Egg).
See a demo of it.
Amazon.com, Inc. (AMZN)
Sector: Consumer Discretionary
What they do: They sell stuff on the web.
Amazon is the largest e-commerce platform in the world, and it provides the Amazon Web Services cloud platform.
Fun fact: As of the end of 2023, Amazon had approximately 1.5 million employees worldwide.
This is more people than the population of Wyoming and Vermont combined.
Alphabet Inc. (GOOGL)
Sector: Communication Services
What they do: They search the web.
Alphabet is the parent company of Google, the world’s dominant search engine.
Other businesses include YouTube, Android phones, Google Cloud platform, Waymo autonomous vehicles, and smart home devices.
Fun fact: The slogan “Don’t Be Evil” became Google’s internal code of conduct in the early 2000s when Paul Buchheit, one of the early engineers at Google, came up with the phrase.
Meta Platforms, Inc. (META)
Sector: Communication Services
What they do: They started Facebook.
Formerly known as Facebook, Meta makes social networking platforms such as Facebook, Instagram, and WhatsApp.
They changed their name to Meta to signify their entry into the virtual reality space with Oculus and Metaverse technologies.
Fun Fact: Mark Zuckerberg is building a secret large $100 million compound in Hawaii.
It includes a high-tech underground bunker that is self-contained with its own energy and food supplies.
There is even a network of 11 disk-shaped treehouses connected by rope bridges.
Tesla, Inc. (TSLA)
Sector: Consumer Discretionary
What they do: They build cars.
Tesla makes electric vehicles with autonomous driving technology.
They also make battery storage and solar energy solutions.
Fun Fact: Elon named one of his sons born May 4, 2020, as “X Æ A-Xii” (pronounced “X Ash A Twelve”).
He goes by the nickname “X.”
The capital ash character can be typed in Windows by typing “0198” on the numeric keypad while holding down the Alt-key.
On Mac, it is simply Option-Shift-Apostrophe.
Due to difficulty typing and to conform with California naming laws, the name was changed to “X AE A-Xii.”
More Fun Facts
All of the magnificent seven companies are involved in AI.
Amazon has a Sparrow AI-powered robot that can sort and handle millions of individual items in warehouses using machine vision and artificial intelligence.
Projects such as Google DeepMind and Google Brain made various AI and machine learning breakthroughs in various domains, such as language, 3D modeling, gaming, robotics, mathematics, and more.
Apple is focused on putting AI into consumer devices such as iPhone, Mac, Siri, Apple Watch, etc.
Tesla wants to deploy a fleet of AI-powered self-driving robotaxis.
NVIDIA AI-specific chips, like the H100, are 9 times faster for AI training and 30 times faster for inference than its predecessor.
Because of AI’s high computation rate and high energy demands, Microsoft wants to reopen the Three Mile Island nuclear power plant, while Meta is looking for developers to build a small nuclear power plant.
We hope you enjoyed this article on the magnificent seven stocks.
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Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.
Original source: https://optionstradingiq.com/magnificent-seven-stocks/
