Article By Kieran Degiorgio
There have been multiple groupings of dominant companies over the years, from the previous ‘FAANG’, which included US listed companies Facebook, Apple, Amazon, Netflix and Google, to Europe’s more recent ‘GRANOLAS’, which is made up of eleven large-cap European listed stocks spanning sectors such as pharmaceuticals, luxury, consumer staples and technology.
It is after all part of human nature to sort our surroundings based on a variety of similarities.
None of these analyst coined groupings of companies have however been as influential on global equity market performance over the past years as the US’s ‘MAG 7’, or Magnificent Seven.
The group symbolizes growth oriented mega-cap technology companies which are at the forefront of innovation and is made up of Microsoft, Alphabet (Google), Meta (previously Facebook), Apple, Nvidia, Amazon and Tesla. Collectively these companies currently boast a market capitalization of around $23 trillion and represent approximately 33% of the S&P 500, the predominant US equity benchmark.
While the group’s performance over the recent past has been stellar, returning a staggering 275% since the end of 2020, under the hood, as of late, one can notice a higher level of selectivity amongst the group’s constituents as investors become more inquisitive about the idiosyncrasies surrounding each investment profile.
Nvidia, the developer of advanced chips essential in the evolution of AI capabilities, is the only company within the group yet to report its financial performance for Q2 of this year. Previously a clear winner and beneficiary of ever-increasing demand for compute power, its shares have lagged behind the broader ‘MAG 7’ index, in spite of a 19% YTD rise, as worries re-emerged in relation to circular financing.
Alphabet’s shares have led the pack higher with a meteoric 92% rise since the start of the year. Revenues surged 24% for Q2 over the same period of 2025, driven by a considerable acceleration in top-line contribution from Google Cloud. While negative free cash flows weighed down by increasing AI related capital expenditures continue to unease investors, Google’s dominant market position and vertically integrated AI stack have thus far tilted the market’s verdict in its favor.
Microsoft, still down around 6% YTD, is staging a comeback post a very strong set of Q2 results which sent its shares higher by 25% since reporting. Azure revenue growth, increased Microsoft 365 Copilot adoption with now more than 30 million paid seats, along with setting the standard for AI monetization combined to re-attract investors’ interest and allocations.
Closing off the big three hyperscalers, Amazon, whose shares rose 30% YTD, reached the $3 trillion market capitalization level for the first time ever following a set of record breaking results for Q2 of this year, which were published on the 30th of July. AWS, Amazon Web Services, registered its fastest pace of expansion in eighteen quarters, with the company revising higher capex projections in support of such demand.
Social media giant Meta has seen the short end of the stick with investors punishing its raised guidance for capex spending in 2026. The company is seemingly facing a higher level of scrutiny on its spending, with the failed Metaverse investment still being a bit too fresh in investors’ memories. Meta’s shares have fallen 23% since the start of the year.
Apple, which has avoided the AI dominance dogfight, just posted its best June quarter ever, with revenues exceeding $109 billion as iPhone sales grew 22% year over year. In spite of this, shares fell circa 7% as cautious forward-looking guidance and potential supply chain bottlenecks weighed on investor sentiment. Apple is still up 52% YTD, second only to pack leader Google.
Finally, Tesla, the more colourful of the class in line with its CEO’s character. The company is undergoing an expensive multi-year transition into physical AI, looking to expand beyond automotive manufacturing and into robotics with its humanoid robot, Optimus. Shares are up 6% YTD placing it amongst the laggards, while the stock fell 18% following Q2 reporting as bottom line expectations were missed, in spite of a record number of vehicle deliveries.
Clearly, bottom-up selectivity promises to be more important than ever as major global equity indices approach all-time highs, with this being applicable to equity markets at large and the MAG 7 specifically. It is in these situations where an investor’s diligence in picking a winning horse, or not, can have an outsized impact on portfolio performance.
Kieran Degiorgio is a Senior Portfolio Manager and Research Analyst at Curmi & Partners Ltd.
The information presented in this commentary is solely provided for informational purposes and is not to be interpreted as investment advice, or to be used or considered as an offer or a solicitation to sell/buy or subscribe for any financial instruments, nor to constitute any advice or recommendation with respect to such financial instruments. Curmi & Partners Ltd, with registered address Finance House, Princess Elizabeth Street, Ta Xbiex, Malta XBX 1102, is a member of the Malta Stock Exchange and is licensed by the MFSA to conduct investment services business.