The Mag 7 Turns to the Dynamic Duo

Since OpenAI debuted ChatGPT on November 30, 2022, the technology sector has been on a historic AI-driven rally, with the NASDAQ-100 Index gaining over 145% (through June 5, 2026). But within tech, the Magnificent 7 (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla) has generated even more eyeing popping returns, as a group gaining 379% (assume an equal-weighted basket that is not rebalanced). These seven stocks have a collective market capitalization of $23.8 trillion, approximately 35.2% of the entire S&P 500 market cap.

But since the start of 2025, five of the seven stocks in the Magnificent 7 have started to fade. After gaining 106% in 2023 and 79% in 2024, the above Magnificent 7 basket rose a 'modest' 26% in 2025 and is up just 3% YTD. Only Alphabet and Nvidia are outperforming the S&P 500 over the past 17 months, 5 days. In fact, Meta, Microsoft, and Tesla are barely holding on, either flat or actually negative since 2024, as shown below.

Source: Total Real Returns and Mentabye calculations. As of June 5, 2026.

Compare that to the 2023-2024 period, when all the Magnificent 7 stocks were blowing past the S&P 500, especially Nvidia which gained 820%! Perhaps the frenzy around AI is starting to cool? Or is the Mag 7 is really becoming the Mag 2? 

Source: Total Real Returns and Mentabye calculations. As of December 31, 2024.