The Magnificent Seven Stocks Are Soaring Once More! Will They Continue Their Climb? By: Stock Market Charlie

The Mag 7 Stock Companies

Key Takeaways

• Exciting news! After trailing the S&P 500 for much of 2025, the Magnificent 7 have surged ahead to reclaim their lead! Tesla, Google parent Alphabet, and Apple have been the shining stars driving the group's impressive gains in recent weeks.

• While there's some caution regarding stock performance, many market enthusiasts believe that, at least in the short term, the conditions are ripe for further growth!

Last year's Magnificent 7 tech leaders are back in action and making waves!

This year hasn't always been smooth sailing. The powerhouse tech giants—Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG, GOOGL), Meta (META), and Tesla (TSLA)—have been trailing behind the broader market for most of 2025. This sparked debates about whether their dominance was fading or if a shake-up in their lineup was needed.

Then came September's incredible rally! The Roundhill Magnificent Seven ETF (MAGS) has surged nearly 20% year-to-date, outpacing the S&P 500's impressive 15% gain and more than doubling the benchmark index's performance in the third quarter. The burning question now: What's next on the horizon?

Magnificent 7 Gains Now Outpace the S&P 500 for 2025

Throughout the majority of this year, the Magnificent 7's performance was behind that of the S&P 500. However, this trend shifted in September.

Roundhill Magnificent Seven ETF (MAGS) S&P 500 (SPX)

chart growth of MAG 7 in 2025

The bullish momentum is still going strong! Jeff Buchbinder, chief equity strategist at LPL Financial, enthusiastically noted on Thursday that growth stocks, especially those connected to AI, thrived in the third quarter. This success was fueled by impressive earnings, anticipated AI-driven growth, and lower interest rates, making borrowing more affordable. Wall Street analysts are optimistic that these exciting trends will keep rolling!

There's an electrifying buzz about a bubble in AI! Even Jeff Bezos has alluded to an "industrial bubble," where the thrill is in identifying the future champions among the promising contenders.

Bank of America analysts on Friday pointed out that "every bubble in history popped by central bank tightening, and no central bank in the world has hiked rates in the past 2 months." A recent survey of Black Investors Coalition readers showcased cooling optimism about the stock market, yet they remain passionately committed to growth stocks, even as valuations skyrocket!

The recent surge in some Magnificent 7 stocks showcases the incredible excitement in the market! AI superstar Nvidia has been on a steady climb since April, thanks to booming sales of its chips and a reprieve from trade policy challenges. It's the year's top performer! Meanwhile, Tesla, Google parent Alphabet, and Apple have been the driving forces behind the group's recent momentum, bouncing back from earlier setbacks.

Tesla's stock skyrocketed by a third in September as concerns over CEO Elon Musk's political moves and sluggish sales faded away, and enthusiasts turned their attention to the company's breakthroughs in autonomous driving, robotics, and AI.

Alphabet soared approximately 15% in September following a significant legal victory when a federal judge decided Google could keep its Chrome browser. Apple surged nearly 10% after reports of unexpectedly high demand for its latest iPhone 17 and positive developments with the Trump administration.

All these developments have market enthusiasts buzzing with anticipation, wondering when this thrilling ride might slow down, but eager to stay in the game. Pictet Asset Management Chief Strategist Luca Paolini highlighted the anticipation of lower rates and robust corporate profits as reasons to "see upside in equities despite potential impacts of the US government shutdown."

Pictet, he noted, anticipates "upside in riskier asset classes in the short term."

Best Regards,

Stock Market Charlie