What are the 'Magnificent Seven' stocks? Nvidia, Meta, Apple and other companies part of the group

The "Magnificent Seven" in business are a group of high-performing stocks. These stocks are influential in the U.S. stock market and are heavily driven by innovations in technology, brand equity and financial performance, according to Investopedia. 

The companies included in the Magnificent Seven are known around the world and have a strong consumer base that is loyal to the companies and the services they provide. 

The Magnificent Seven is a term that replaced FANNG. Jim Cramer from CNBC first came up with FANG acronym to represent the most successful companies in the stock market at the time in 2013, according to US News and Money. These companies were Facebook, Amazon, Netflix and Google. 

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Cramer revised the acronym to FAANG in 2017 to include Apple. It wasn't until 2023 when the Magnificent Seven emerged. Michael Hartnett, a Bank of America analyst, is credited with using this borrowed term from the 1960s movie to describe high-performing stocks, according to U.S. News and Money.  

Take a look at the companies that make up the Magnificent Seven.

1. Microsoft

Microsoft is the world's largest software company. It is known for Windows software as well as the Xbox game consoles and Microsoft 365 suite. The company is also the producer of several laptops and desktop computers. 

In the early days of Microsoft in 1975, creators Bill Gates and Paul Allen created the Altair 8800 computer while students at Harvard University. 

2. Amazon

Amazon started as an online bookstore in 1994 before becoming one of the world's largest online retailers. 

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Affiliated with Amazon is Amazon Web Services, a cloud computing service. Amazon also houses its own digital streaming service with Prime Video and innovative products like the Kindle e-reader and smart home devices like the Echo. 

The massive company had humble beginnings, with Jeff Bezos starting Amazon out of his Seattle garage in 1995. 

3. Meta

Meta Platforms, Inc., previously Facebook, Inc., is a technology company that owns and operates social media platforms and messaging software, including Meta, Instagram, WhatsApp and Messenger. 

Mark Zuckerberg founded the company in 2004, originally as Facebook. The switch from Facebook to Meta came with the company's focus on AI, specifically through creating the "metaverse." 

"The metaverse is the next evolution in social connection and the successor to the mobile internet," according to the company's website. "Like the internet, the metaverse will help you connect with people when you aren’t physically in the same place and get us even closer to that feeling of being together in person."

4. Apple

Apple is a leader in technology through the sales of its highly sought after products. Around 50% of Apple's total revenue comes from iPhones, according to U.S. News and Money. 

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The company sells many other popular electronic products, like laptops, desktops, watches and headphones. 

In February 2024, Apple released its first wearable virtual reality headset, the Apple Vision Pro. The headset comes with a hefty price tag of $3,499. Since it's release, many have gone viral for working on subways with their headsets and someone even wearing the device during his wedding. 

5. Alphabet

Alphabet is the parent company of Google. Google was rebranded in 2015 as Alphabet, making the search engine a subsidiary of the company. 

Under Google falls Google Search, the AI Gemini, Gmail, Google Calender and more. The video sharing platform YouTube is also owned by Google. 

Google also has many products like phones, tablets and watches. 

6. Nvidia

Nvidia is a leader in technology and artifical intelligence. The company is widely known for it's highly advanced graphics processing units (GPUs). 

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The GPUs designed by Nvidia are for professional use, as well as gaming, according to Investopedia. They also design chip systems used for technology, such as vehicles and robotics, according to the source. 

7. Tesla

Tesla was co-founded by Elon Musk in 2003. The company is known for its production of electric vehicles, battery products and solar energy products. 

The Tesla Model Y is a popular choice among consumers. Other models include the Model S, Model 3, Model X and the futuristic Cybertruck.