The Magnificent 7 stocks are back.
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After months of trading sideways or slumping, the mega-cap tech stocks collectively known as the Magnificent 7 are marching higher once again as investors rotate back into growth securities amid the continued rally in U.S. equities.
The Roundhill Magnificent Seven ETF (MAGS) that tracks the stocks of Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), Nvidia (NVDA), Meta Platforms (META), Microsoft (MSFT), and Tesla (TSLA) is up 5% this week. The strong performance of these mega-cap tech stocks helped push the Nasdaq Composite index to its 35th record close earlier this week.
Rotation Into Growth
Among the Magnificent 7, Meta Platforms, Amazon, and Tesla had the strongest performances over the last five trading sessions, with each stock gaining more than 7%. Apple and Alphabet each rose 3% on the week, while the stocks of Nvidia and Microsoft increased 4%. It was a big reversal for several of the stocks, with Meta and Microsoft posting their biggest one-week gains since the spring.
The rise in the Magnificent 7 stocks comes as investors rotate back into growth stocks. Analysts are attributing this rotation to expectations that interest rates may not be lowered as quickly as expected. For all of 2025, Wall Street currently expects only two 25-basis point rate cuts from the U.S. Federal Reserve.
Some tech analysts see more gains ahead for tech stocks. Daniel Ives, a four-star rated analyst at Wedbush Securities, recently forecast that tech stocks will rise another 20% in 2025. The MAGS ETF is up 62% year-to-date.
Is the MAGS ETF a Buy?
Analysts currently rate the MAGS ETF that tracks the Magnificent 7 stocks a consensus Hold. That rating is based on 12 Buy and eight Hold recommendations assigned in the past 12 months. The average MAGS price target of $55.30 implies 0.95% upside from current levels.
Read more analyst ratings on the MAGS ETF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
