AI Summary
Show More
Quickly grasp the article's content and gauge market sentiment in just 30 seconds!
Key Highlights:
The Magnificent Seven refers to Apple, Microsoft, Alphabet, Amazon, NVIDIA, Meta and Tesla, now making up roughly 45% of the Nasdaq-100 market cap
NVIDIA Microsoft is nearing the $4 trillion market cap milestone, with Apple further behind at $3.1 trillion
Trading at $158, NVIDIA needs to reach $164 to hit the symbolic $4 trillion valuation
Microsoft’s stock is trading near a record high, and needs to hit $537 to reach $4 trillion
Apple and Tesla lag behind due to tariff exposure and weaker sentiment
AI momentum continues to lift NVIDIA, Microsoft, Meta and Amazon
U.S. tariff decisions and the Q2 earnings season could trigger major tech stock volatility
The RSI and MACD indicators are showing overbought signals, but still allow room for upside momentum
The tech giants known as the Magnificent Seven — Apple, Microsoft, Alphabet, Amazon, NVIDIA, Meta and Tesla — now account for approximately 45% of the Nasdaq-100. Their combined market value stands near $18 trillion, dwarfing entire national stock markets, such as Germany’s DAX 40, which is worth approximately $2.3 trillion in total.
Despite their dominance, 2025 performance has been uneven (as of July 7):
Apple is down 13.9% year-to-date
Microsoft is up 19%
NVIDIA is up 15%
Amazon is up 1.45%
Alphabet is down 6%
Meta is up 20%
Tesla is down 22%
Two major forces are driving this divergence: US tariff policies and the AI trend.
Apple and Tesla are among the companies most exposed to tariffs, due to their heavy reliance on Chinese production and sales. Both companies have seen sentiment weaken amid rising trade tensions.
Apple’s attempt to shift production to India was undercut when US President Trump stated that tariffs would still apply. Tesla has faced pressure not just from tariffs, but also from political friction between Trump and Elon Musk, who recently announced plans to launch a new political party in opposition to Trump’s tax agenda.
By contrast, Microsoft and NVIDIA have thrived on the back of the ongoing AI boom.
NVIDIA designs the high-performance chips that power AI infrastructure, and Microsoft is one of NVIDIA’s largest clients. With deep investment in OpenAI and widespread integration of AI services, Microsoft’s business is being transformed, with both stocks seeing strong investor interest.
Not only do these companies benefit from the AI trend, but they fuel each other’s growth.
A historic milestone is in sight: the first company ever to reach a $4 trillion valuation. NVIDIA is currently valued at $3.89 trillion, and needs to reach a share price of $164 to hit the mark. Microsoft follows at $3.71 trillion, requiring a price of $537 to hit the milestone. Apple is further behind, valued at $3.19 trillion, and would need to trade above $267 to catch up.
Traders are watching this symbolic race closely, as hitting a $4 trillion market cap could attract fresh momentum and media-driven capital inflows.
NVIDIA is trading at around $158, with an upside target of $164, the level required to reach $4 trillion in market cap. Its relative strength index (RSI) indicator has entered overbought territory at 70, but previous peaks at 80 in June 2024 and 84 in February 2024 show that there’s still room to advance. Meanwhile, the stock’s MACD indicator is flat, suggesting momentum could build quickly if earnings or tariff news is positive. If NVIDIA breaks above $164, a move toward $180 is possible, especially if AI momentum continues.
Source: TradingView
Microsoft is also trading at record highs, just below $500. Its share price would need to reach $537 in order for the company to achieve a $4 trillion valuation. As with NVIDIA, the RSI is near 70, though it had previously hit 76 in July 2024. Therefore, a new push higher is still technically possible.
Its MACD remains flat, showing that investors are waiting for stronger signals, likely tied to upcoming earnings or Trump’s tariff decisions in July.
Source: TradingView
The Magnificent Seven remain the most influential stock group globally, with NVIDIA and Microsoft currently leading the pack. Their combination of exposure to AI and market cap momentum makes them key drivers of market sentiment.
The upcoming Q2 earnings season and Trump’s tariff decisions could be decisive. NVIDIA typically reports last, while Microsoft’s results will also serve as a barometer for broader tech sentiment. If both companies deliver strong earnings and tariffs are delayed or softened, the $4 trillion milestone could be reached, and potentially surpassed. For traders, these stocks offer diversification, momentum and leadership at the center of today’s market narrative.