The Magnificent Seven, a group of top-performing tech stocks, has delivered extraordinary returns since Joe Biden was elected in early November 2020, significantly outpacing the broader stock market.
An equally weighted portfolio of Microsoft Corp. MSFT, Apple Inc. AAPL, NVIDIA Corp. NVDA, Alphabet Inc. GOOG GOOGL, Amazon.com Inc. AMZN, Meta Platforms Inc. META, and Tesla, Inc. TSLA has returned 213.6% over the last four years. This equates to a compounded annualized growth rate, or CAGR, of about 25%.
To put this in perspective, an investor who put $10,000 into this tech-heavy basket on Nov. 3, 2020 would have seen their investment grow to roughly $31,360 by Nov. 5, 2024.
In contrast, an equivalent investment in the SPDR S&P 500 ETF Trust SPY would have grown by 74%, for a CAGR of just 14.8%, resulting in an end balance of about $17,400.
Here’s a closer look at how these tech giants fared individually under Biden and how their performance compares to the Trump era.
Magnificent 7 Performance In The Biden Years
| Stock | Return (%) | CAGR (%) | Market Cap (Nov. 3, 2020) | Market Cap (Nov. 5, 2024) |
|---|---|---|---|---|
| NVIDIA | 967.92% | 80.56% | $321.69 billion | $3.42 trillion |
| Meta Platforms | 114.22% | 20.98% | $755.65 billion | $1.44 trillion |
| Alphabet | 105.85% | 19.78% | $1.1 trillion | $2.09 trillion |
| Apple | 101.13% | 19.08% | $1.88 trillion | $3.37 trillion |
| Microsoft | 99.55% | 18.85% | $1.56 trillion | $3.07 trillion |
| Tesla | 77.48% | 15.42% | $415.27 billion | $807.74 billion |
| Amazon | 29.36% | 6.64% | $1.53 trillion | $2.08 trillion |
| Average return, CAGR / Total market cap. | 213.64% | 25.02% | $7.58 trillion | $16.26 trillion |
Among the Magnificent Seven, Nvidia as been the standout performer under Biden, surging 967.92% with an annualized return of 80.56%. This explosive growth, driven by the AI boom and demand for GPUs, has catapulted NVIDIA's market cap from $321.69 billion to over $3.4 trillion.
Apple, Microsoft, and Alphabet have all roughly doubled in market value under Biden, each delivering annualized returns close to 19%. These established tech giants benefited from strong growth in their cloud, advertising and services segments.
Tesla performance lagged behind the average of the basket. Tesla shares rose 77.48%, translating to a CAGR of 15.42%. The company’s market cap nearly doubled, reaching $807.74 billion.
Amazon stands out as a relative laggard in this group, with only a 29.36% gain — translating to a 6.64% CAGR — over the same period. The company has faced headwinds from slowing e-commerce growth post-pandemic and rising costs impacting its profitability.
Magnificent 7 Performance Under Trump
The same basket of tech stocks had an even more impressive run under the Trump administration from Nov. 8, 2016 to Nov. 2, 2020.
The SPY ETF delivered a 67% gain during the same time frame, slightly lagging broader market returns under Biden.
Here’s how each Magnificent Seven stock and the equally weighted basket performed during Trump’s tenure:
| Stock | Return (%) | CAGR (%) | Market Cap (Nov. 8, 2016) | Market Cap (Nov. 2, 2020) |
|---|---|---|---|---|
| NVIDIA | 631.84% | 64.47% | $38.07 billion | $310.85 billion |
| Meta Platforms | 113.57% | 20.89% | $358.60 billion | $744.35 billion |
| Alphabet | 102.67% | 19.32% | $552.28 billion | $1.10 trillion |
| Apple | 297.77% | 41.22% | $592.21 billion | $1.85 trillion |
| Microsoft | 241.38% | 35.93% | $470.18 billion | $1.53 trillion |
| Tesla | 987.26% | 81.59% | $29.22 billion | $379.64 billion |
| Amazon | 286.98% | 40.26% | $331.19 billion | $1.51 trillion |
| Average return, CAGR / Total market cap. | 380.2% | 43.38% | $2.56 trillion | $7.42 trillion |
Under Trump’s administration, the Magnificent Seven returned an average of 380.2%, with an annualized return of 43.38%.
A $10,000 investment in an equally weighted basket of the Magnificent Seven stocks at the start of Trump’s term would have grown to approximately $48,020 by Nov. 2, 2020.
This performance was driven by massive rallies, especially in Tesla and Nvidia, which surged 987.26% and 631.84%, respectively.
These stocks were boosted by early enthusiasm for electric vehicles and semiconductor technology, which set the stage for further gains in the Biden era.
Amazon and Apple also thrived during Trump's tenure, with gains of 286.98% and 297.77%, respectively, benefiting from booming e-commerce and strong iPhone sales.
Even the more mature players, Microsoft and Alphabet, saw their market caps more than double, reflecting the ongoing expansion of cloud computing and digital advertising.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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