In May, the Magnificent Seven (Mag 7) stocks—Apple, Microsoft, Alphabet, Amazon, NVIDIA, Tesla, and Meta—achieved a collective gain of over 13%, marking their best monthly performance in nearly two years. These stocks contributed to 62% of the gains in the S&P 500 for the month. NVIDIA notably reclaimed its position as the world’s most valuable company, with a market cap of $3.45 trillion, while Tesla surged more than 20%.
The Roundhill Magnificent Seven ETF (MAGS), focused on these stocks, rose 10% in May, outperforming the broad market fund SPY. Collectively, the Mag 7 is expected to generate 24.2% of total S&P 500 earnings in 2025 and account for 31.6% of its total market capitalization. However, despite the recent rally, these stocks remain in negative territory year-to-date, and their median forward price-to-earnings ratio reached approximately 28, up from 22.2 in April.
