As 2025 starts with more of a bummer than a bang, Apple (AAPL) and Nvidia (NVDA) have both sliced below their 10-week moving averages. But Apple stock remains king in terms of market capitalization weighting on the Nasdaq, accounting for 9.6% of the tech-heavy index. Nvidia stock has seen its weighting slip to 8.9%. Microsoft (MSFT) remains in the No. 3, making up at 8.3%.
Meanwhile, Alphabet (GOOGL) has edged out Amazon.com (AMZN) for fourth place. Google stock accounts for 6.3% of the Nasdaq, slightly eclipsing Amazon’s 6.2%.
In other news on the Magnificent Seven stocks, Tesla (TSLA) has started the new year where it left off 2024, creating more distance with non-Mag 7 member Broadcom (AVGO). After a period of locking horns last year, Tesla stock now accounts for 3.4% of Nasdaq, topping Broadcom’s 2.8%.
Meta Platforms (META) rounds out the Mag 7 group, accounting for 4.2% of the index. The social media giant reportedly plans to release new Ray-Ban glasses as part of its push to expand “AI-native” devices.
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IBD’s recommended market exposure level has dropped to 20%-40%. The five-tiered system, a key part of The IBD Methodology, helps investors stay protected and profitable with sound risk management.
What Percentage Of Nasdaq Are The Magnificent Seven Stocks?
Here are the current individual market cap weightings of Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia and Tesla. The weightings will, of course, change as their market caps fluctuate.
| Company | Symbol | Market Cap Weighting (%)* | Comp Rating |
|---|---|---|---|
| Apple | (AAPL) | 9.6 | 92 |
| Nvidia | (NVDA) | 8.9 | 98 |
| Microsoft | (MSFT) | 8.3 | 78 |
| Alphabet Class C | (GOOG) | 6.3 | 98 |
| Alphabet class A | (GOOGL) | 6.3 | 98 |
| Amazon.com | (AMZN) | 6.2 | 98 |
| Meta Platforms | (META) | 4.2 | 99 |
| Tesla | (TSLA) | 3.4 | 91 |
*As of Jan. 10 |
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What Are The Magnificent Seven Stocks?
Just as Wall Street moved on from the Nifty 50 in the 1970s as the term’s popularity and usefulness waned, the so-called FANG or FAANG stocks have lost their bite. Replacing them in the lexicon du jour is the phrase Magnificent Seven Stocks: Alphabet, Apple, Amazon, Meta Platforms, Microsoft, Nvidia and Tesla.
From GOOGL, AAPL and AMZN to META, MSFT, NVDA and TSLA, the Magnificent Seven stocks account for around half of the weighting of the Nasdaq.
Unlike the price-weighted Dow Jones Industrial Average, the Nasdaq composite and S&P 500 indexes are market-capitalization weighted.
As a result, the combined market caps of the Magnificent Seven stocks have a disproportional influence on the Nasdaq composite and Nasdaq 100.
To help address this issue, the Nasdaq rebalanced the index on July 24. That reduced the individual weightings of the Magnificent Seven stocks. But the rebalancing simply changed the total weighting of these seven megacaps from over 50% to nearly 50%.
In short, the Nasdaq 100 remains heavily concentrated on these megacap growth stocks.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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