This year, although the global stock markets faced pressures from high interest rates, economic uncertainty, and geopolitical risks, the large U.S. technology stocks such as the “Magnificent Seven” remain the dominant players in the U.S. stock market and continue to attract the keenest attention from investors worldwide.
Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla continue to be key drivers of the U.S. capital market. Data from recent years show that these seven still account for a large portion of the U.S. stock market's total value, with over half of the S&P 500 index's returns coming from just a few companies in this group. Despite significant sell-offs related to AI and semiconductor stocks late in the third quarter amid concerns over an AI bubble, prompting some investors to question whether tech investments still justify the risks,
however, looking back at the overall picture this year, it is clear that the tech group led by the “Magnificent Seven” did not grow in unison as before. Market trends reflect more diversified investments, with investors increasingly distinguishing companies delivering clear revenue figures and profitability to assess who can turn technologies—especially AI—into real income.
A key highlight of this year's performance is the demonstrated ability to generate high levels of free cash flow. Despite increased spending on research, development, and investments in AI, cloud computing, and digital infrastructure, these companies maintain strong customer bases and ecosystems, along with scalable new technologies, reinforcing their role in shaping the market's future.
This year clearly shows that the “Magnificent Seven” remain a group with high growth potential, but the market no longer views them as a homogeneous block. Instead, it values the "quality of growth" over mere expectations, keeping tech stocks as a core pillar of the global economy in the long term.
If one must select the best performing stock in the group this year, Nvidia clearly stands out. Nvidia has become central to global AI growth, driven by demand for processing chips for data centers and AI systems from major tech companies, governments, and large organizations. This has led to rapid revenue and profit growth, with profit margins unusually high for the hardware industry. Analysts view Nvidia not just as a stock with a strong price rise but as a company building the infrastructure of the AI economy, not only in the U.S. but expanding into new markets worldwide, especially Southeast Asia, making its performance significant for the entire tech sector.
Next are Microsoft and Alphabet, notable for successfully integrating AI into their core businesses. Microsoft has embedded AI through Copilot in Office, Windows, and Azure, turning AI into a new enterprise revenue source. Alphabet uses AI to strengthen its search and advertising businesses and to bring its cloud business closer to profitability. Both companies show that AI is not just a cost for big tech but a tool to protect and grow existing businesses.
Meta has restored investor confidence by controlling costs and using AI to enhance advertising efficiency. Amazon stands out with profit recovery after restructuring its retail business and improving AWS efficiency.
Meanwhile, Apple’s growth has slowed but remains strong due to its services revenue and ecosystem. Tesla still faces pressure in the electric vehicle business but is valued for its long-term AI and autonomous vehicle potential.
Overall this year, Nvidia outperformed both the index and other large-cap stocks, followed by Apple, Microsoft, Alphabet, and Meta, which have delivered returns above the index over the long term. Apple and Microsoft lead in cash preservation, while Amazon and Tesla have higher volatility but continue to outperform the market.
The 2025 summary shows the market increasingly views new-era tech stocks not just by growth rates but by their ability to succeed—especially in generating AI-driven revenue. Companies generating substantial cash flow will be those able to invest to “own the future” ahead of rivals. These firms remain key drivers of stock indices that set the investment direction for global investors and shape innovation rhythms across critical industries, from technological infrastructure to consumer technologies.
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