Magnificent 7 Since 2020: The AI-Era Megacaps, Ranked
AAPL · MSFT · GOOGL · AMZN · NVDA · META · TSLA · Since 2020 · $1,000 split across each
The Magnificent 7, coined in 2023 by Michael Hartnett at Bank of America, replaced FAANG as the shorthand for megacap US equities. It drops Netflix, adds Microsoft, Nvidia, and Tesla.
Picking 2020 as the start date captures two massive regime shifts: the pandemic rally that lifted everything, and the 2023 to 2025 AI narrative that split the group in half. Nvidia is the obvious story, but the quieter divergence between Tesla and the rest is just as revealing.
What the chart shows
Nvidia is the only one in a different league
Nvidia returned more in 2023 alone than most Mag 7 names returned over the full five-year window. The chart needs a log scale to stay readable once you include it, which is telling.
Microsoft is the steadiest winner
Microsoft had no down year in this window greater than 30 percent and rode both the cloud and the OpenAI partnership. It is the closest thing to a "Mag 7 index fund" single stock.
Tesla is the volatility story
Tesla hit peaks in late 2021 and mid-2024, with deep drawdowns in between. Timing mattered more for Tesla than for any other Mag 7 name, and the annualized return is noticeably lower than the peak-to-peak story suggests.
Apple and Amazon became the laggards
Both names delivered solid absolute returns but trailed the cohort average. Apple's China exposure and Amazon's post-pandemic hangover held them back relative to the AI winners.
Meta recovered from the worst drawdown
Meta was the single worst Mag 7 performer in 2022, down more than 70 percent from its 2021 peak. It has since been the best recovery story, with the 2023 to 2024 rally lifting it back near the top of the pack.
Frequently asked questions
Is Magnificent 7 still the right lens in 2026?
The correlation between these seven names has risen, which cuts both ways. They move together on macro news but split sharply on AI-specific catalysts. Many investors now talk about "AI winners" (Nvidia, Microsoft, Meta) versus "AI adopters" (the rest).
How much of the S&P 500 is these seven stocks?
The Mag 7 accounted for roughly 30 percent of the S&P 500 by market cap through 2024 and 2025. That concentration is historically unusual and part of why index returns have tracked these seven names so closely.
What if I had just held Nvidia?
The calculator at /calculator/ can show this. Nvidia alone delivered a higher absolute return than the other six combined through most of 2023 to 2025, but the drawdown risk was also higher.
Why start in 2020 and not 2023?
Starting in 2023 would show only the AI rally and miss the full cycle. 2020 captures the pandemic rally, the 2022 correction, and the AI rally, which is a more honest picture of Mag 7 risk.
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For informational and educational purposes only. Not financial advice. Past performance does not guarantee future results. All calculations are based on split-adjusted closing prices from Yahoo Finance and do not account for dividends, taxes, or trading fees. See our methodology and full disclaimer.