The “Magnificent 7” have long been considered the undisputed drivers of the US technology market. Why some tech giants could lose touch.
• NVIDIA impresses with strong sales and profit growth in 2025
• Alphabet increases its sales thanks to AI solutions
• Tesla lags behind competitors in the robotaxis sector
The so-called “Magnificent 7” were considered the driving force of technological change and the stock market rally of recent years. This elite includes the US tech giants Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla – companies that not only move the stock markets, but also significantly shape them.
Together they account for around 30 percent of the S&P 500 and also leave a clear mark on global indices such as the MSCI World. Their success is based primarily on innovative strength, global reach and their technological pioneering role – especially in the area of artificial intelligence and cloud computing.
Big Tech in the AI age
According to Fortune, a clear discrepancy within the group will appear in 2025:
Microsoft, Apple and Meta Platforms lagged somewhat behind the overall market, while Amazon was barely able to make any significant gains. The electric car manufacturer Tesla is also struggling with challenges: how Elon Musk reported on January 22, 2026 in a post on X (formerly Twitter) that Tesla had launched robotaxi rides in Austin, Texas without a safety driver. However, Tesla lags behind some of its competitors in this area: Alphabet’s Waymo currently leads the US market with its robotaxi service.
Things are completely different with Alphabet itself: The company clearly stands out and is one of the biggest winners among Big Tech stocks, according to Fortune. The difference between the companies is closely related to their success in the field of artificial intelligence: In the past two years, Microsoft, Apple, Meta Platforms, Amazon and Alphabet have invested heavily in AI, but so far only Alphabet seems to have managed to successfully convert these investments into growth, it continues.
According to the Wall Street Journal, David Bahnsen, chief investment officer at Bahnsen Group, said the correlation between stocks has broken down and the only thing the companies have in common is their valuation as trillion-dollar companies.
NVIDIA and Alphabet shine with strong performance
According to company information, NVIDIA increased its revenue to almost $57 billion in the third quarter of fiscal 2026 – an increase of around 62 percent compared to the previous year – and increased net profit by 65 percent year-on-year. According to NVIDIA, the data center segment in particular grew strongly in the third quarter with $51.2 billion, an increase of 66 percent compared to the same period last year. Growth drivers include the Blackwell series GPUs, which achieved top results in performance and efficiency. Through partnerships with OpenAI, Google Cloud, Microsoft, Oracle, xAI and Intel, among others, and investments in supercomputers, the US company is strengthening its position in the AI sector.
According to NVIDIA, the global AI infrastructure is being further expanded: state-of-the-art data center and AI systems are being used in the USA, Great Britain, Germany and South Korea – often in collaboration with government and industrial partners such as Deutsche Telekom or Samsung. NVIDIA therefore plays a central role in expanding global AI infrastructures.
According to its own information, Alphabet was able to achieve important milestones in the third quarter of 2025: Group sales rose by 16 percent to $102.3 billion. All major business areas contributed to the growth, led by Google Cloud, which increased its revenue by 34 percent to $15.2 billion – driven by the expansion of its cloud platform, AI infrastructure and generative AI solutions. Google Services also grew significantly and achieved a 14 percent increase in sales to $87.1 billion.
Are the “Magnificent 7” still “magnificent”?
Overall, in 2025 it became clear that the Mag 7 no longer act as a closed, successful community: Tesla is lagging behind the competition on the US market with its robotaxis, Alphabet and NVIDIA are benefiting from successful AI investments and Amazon, Apple, Microsoft and Meta Platforms are falling noticeably behind. As Bank of America strategist Michael Hartnett points out, according to the Wall Street Journal, the next Mag 7 are the companies that can show that adopting AI fundamentally changes their business models.
Editorial team finanzen.net
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