SUMMARY
- First, it was FAANG: Facebook, Apple, Amazon, Netflix and Google. Now, it’s the Magnificent Seven: Meta, Apple, Alphabet, Nvidia, Microsoft, Amazon, and Tesla. The Magnificent Seven are the seven largest listed U.S. companies, and together have a collective market cap of $11 trillion—an astonishing amount, equivalent to nearly half the GDP of the United States.
- After a dismal 2022, where the Magnificent Seven ended the year down more than 40%, this year has been the exact opposite. Driven by the recent artificial intelligence (AI) boom, these seven companies together are now up almost 70% year to date. The Magnificent Seven are considered to be at the centre of the AI buzz, which triggered by the launch of ChatGPT in November last year and fuelled by positive earnings reports for most of these companies.
- The Magnificent Seven have also been the key drivers of the recent strength of the stock market, which has been relatively flat without the contribution of these seven companies, as the chart below illustrates.
DISCLOSURES
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