Magnificent Seven Closed A Blockbuster May, Added Nearly $2 Trillion In Market Value

The Magnificent Seven etched a historic chapter in market history in May 2025, delivering blockbuster gains and an eye-popping $1.75 trillion surge in combined market capitalization, their strongest monthly performance in years.

The Roundhill Magnificent Seven ETF MAGS – an exchange-traded fund investing in Nvidia Corp. NVDA, Tesla Inc. TSLA, Meta Platforms Inc. META, Microsoft Corp. MSFT, Amazon.com Inc. AMZN, Alphabet Inc. GOOGL and Apple Inc. AAPL – closed May with a combined market capitalization of $16.73 trillion, up by $1.75 trillion from a month earlier.

Who Gained The Most?

Nvidia led the pack with a 24.2% gain, marking its strongest month since May 2024. The chipmaker, a key player in the AI race, added a staggering $639 billion in market cap.

Tesla jumped 21.5%, growing its value by $207 billion, while Meta Platforms rallied 19.4%, adding $242 billion. Microsoft gained 16.8%, contributing another $484 billion to the total surge.

Amazon added $219 billion, climbing 10.7%, and Alphabet rose 5.3%, adding $152 billion.

Apple was the lone laggard, falling 6% in May and wiping out $192 billion in market cap. This underperformance, compared to the S&P 500's 6% gain, marks Apple's worst relative showing since 2018.

Historical patterns, however, suggest the dip might be a buying opportunity. As detailed in a recent Benzinga analysis, Apple has often rebounded strongly after periods of relative weakness.

Why Analysts See More Upside

Goldman Sachs analyst Ryan Hammond said he’s watching for the Magnificent Seven to outperform the broader market this summer, citing earnings strength and their defensive appeal.

"Supercap Tech will act as a ‘defensive growth proxy,' and this is exactly what investors want during what will remain highly uncertain times," Hammond said in a Monday note.

He added that the group posted its best quarterly positive earnings-per-share surprise since the third quarter of 2023.

David Mazza, CEO of Roundhill Investments — which manages the Roundhill Magnificent Seven ETF — echoed the bullish sentiment, emphasizing that these companies are not speculative growth plays.

"These companies aren't speculative bets on future adoption," Mazza said. "They are the infrastructure of the real economy and, in some cases, staples within global consumers' lives."

Mazza believes exposure to themes like enterprise demand, AI, cloud computing and automation will prove more resilient than traditional sectors such as consumer staples or utilities.

"MAGS offers diversified exposure to this rare blend of growth, quality, and macro relevance," he said. "In a world where clarity is scarce, the Magnificent Seven remain, ironically, the most grounded in real earnings and economic activity."

Yet Valuations Are Stretching Again

Ed Yardeni, president of Yardeni Research, said in an emailed comment last week that the S&P 500's forward price-to-earnings ratio rose from 18.0 in early April to 21.5 by the end of May.

He added that most of this jump came from the Magnificent Seven, whose group valuation climbed from 21.9 to 27.4 — showing strong investor demand for top tech stocks but also raising concerns that they may be getting too expensive.

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