Apple will retain this crown, but it will be crushed alongside Nvidia
In the year While 2025 started with a bang, Apple (APL) and Nivea (NVDA) both cut below the 10-week moving average. But Apple stock remains king in terms of market capitalization on the Nasdaq, accounting for 9.6% of the tech-heavy index. Nvidia stock saw its weight slide to 8.9%. Microsoft (MSFT) remains in number 3 at 8.3%.
Meanwhile, Alphabet (GOOGLE) is out Amazon.com (AMZN) for the fourth step. Google stock makes up 6.3% of the Nasdaq, slightly overshadowing Amazon’s 6.2%.
In other news on Magnificent Seven shares, Tesla (TSLA) started the new year where 2024 left off, creating more distance with non-Mage 7 members. Broadcom (AVGO). After locking horns last year, Tesla stock now accounts for 3.4% of the Nasdaq, outpacing Broadcom’s 2.8%.
Meta forums (META) narrows the Mag 7 group to 4.2% of the index. The social media giant is reportedly planning to release a new line of Ray-Ban sunglasses as part of its push to expand its “AI-native” devices.
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IBD’s recommended market exposure level has dropped to 20%-40%. The five-step system, a key component of the IBD strategy, helps investors stay protected and profitable through sound risk management.
What is the percentage of the Nasdaq for the amazing seven stocks?
Here are the current individual market capitalization metrics for Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia, and Tesla. The weighting will certainly change as their market value fluctuates.
| Company | sign | Market Cap Weight (%)* | Comp rating |
|---|---|---|---|
| Apple | (APL) | 9.6 | 92 |
| Nivea | (NVDA) | 8.9 | 98 |
| Microsoft | (MSFT) | 8.3 | 78 |
| Alphabet class c | (GOOG) | 6.3 | 98 |
| Alphabet class A | (GOOGLE) | 6.3 | 98 |
| Amazon.com | (AMZN) | 6.2 | 98 |
| Meta forums | (META) | 4.2 | 99 |
| Tesla | (TSLA) | 3.4 | 91 |
* From January 10 |
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Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla
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What are the seven amazing stocks?
Just like Wall Street Nifty 50 In the year As the term’s popularity and utility waned in the 1970s, so-called FANG or FAANG stocks lost their bite. Replacing them in the lexicon du jour is the phrase Amazing Seven stocks: Alphabet, Apple, Amazon, Meta Platforms, Microsoft, Nvidia and Tesla.
From GOOGL, AAPL and AMZN to META, MSFT, NVDA and TSLA, Magnificent Seven stocks account for nearly half of the Nasdaq’s weight.
Unlike the value-weighted Dow Jones Industrial Average, the Nasdaq Composite and S&P 500 indexes are weighted by market-cap.
As a result, the combined market value of Magnificent Seven stocks has a disproportionate impact on the Nasdaq composite and the Nasdaq 100.
To help address this issue, Nasdaq adjusted its index on July 24. That reduced the personal weight of the Manificent Seven’s shares. But rebalancing has changed the total weight of these seven megacaps from more than 50% to almost 50%.
In short, the Nasdaq 100 remains heavily concentrated in these megacap growth stocks.
Follow Matthew Galgani on X (formerly Twitter). @IBD_MGalgani.
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