Antonio Bordunovi
The rising stars of the market, dubbed “The Magnificent 7,” have played a pivotal role in propelling the S&P 500 above the historic 5,000 milestone. However, among these stellar performers, some have shone brighter than others.
According to BofA strategist Michael Hartnett, Nvidia’s (NASDAQ:NVDA) market capitalization has skyrocketed by a staggering $600 billion over the past two months – an amount equivalent to “1 Tesla (TSLA)” (referring to market cap, not 1 car).
Nvidia has led the Magnificent 7 in year-to-date performance, boasting a rise of over 40%. This is closely followed by Meta (META), up more than 30%, Amazon (AMZN) up 15%, and Microsoft (MSFT) up 12%. Meanwhile, Alphabet (GOOG) (GOOGL) has surged by more than 6% since the beginning of 2024, Apple (AAPL) has experienced a 2% dip, and Tesla has encountered a 22% decline.
Nvidia’s monumental $1.7 trillion market cap now stands on par with the entire Chinese stock market, as “the US hits record 64% of MSCI ACWI (ACWI) & China now <3%.”
Adding a touch of perspective, Hartnett notes that “the price of a 30-second ad during Super Bowl I (1967) was $37,500” and contrasts it with “the price for Super Bowl LVII $7,000,000 = 185x jump,” highlighting the meteoric inflation of Super Bowl ad costs (with 93 of the 100 most watched TV shows in ’23 being NFL games).
Furthermore, he adds, “if they could, chicken wings would now cost $43/lb (compared to 23c/lb in 1967), a 6-pack of beer would be $340, a gallon of gasoline $61, the average US house price $4.2 million, and the S&P 500 (SP500) (SPY) (IVV) (VOO) would be at 16,374.”
