Tesla, Nvidia and Apple See Daily Changes in Investor Market Value

After destroying targets, Nvidia (NVDA) triggered a new gap that drove NVDA shares past the 1,000 mark and to a record high. Now the artificial intelligence giant is challenging Litter (AAPL) to No. 2 among Magnificent Seven stocks in terms of market capitalization weighting on the Nasdaq.

While Nvidia CEO Jensen Juang says Tesla (TSLA) is “way ahead” in autonomous vehicles, Tesla shares continue to fall. As a result, its market capitalization weighting on the Nasdaq fell to 1.7%, down from the 1.9% score for Broadcom (AVGO).

Meanwhile, Microsoft causes a breakout and an all-time high, while Google shares flirt with another record of their own.

All this led to a change in the market capitalization classification of Magnificent Seven shares.

Microsoft leads the pack in terms of market capitalization, weighing on the Nasdaq with 9.4% of the high-tech index. Apple ranks second, jumping to 9% of the Nasdaq. But Nvidia, which currently accounts for 8.4% of the index, aims to overtake the iPhone maker.

Sharing the highest possible 99 composite rating with Google stock, Nvidia already clearly surpasses Apple stock’s 74 rating.

Read more stories about magnificent seven stocks

What are the seven magnificent deeds?

Just as Wall Street went from Cool 50 In the 1970s, as the term’s popularity and usefulness waned, so-called FANG or FAANG stocks lost steam. Replacing them in the lexicon of the day are the Seven Magnificent Deeds: Alphabet (Google), Litter, Amazon (AMZN), Metaplatforms (GOAL), Microsoft (MSFT), Nvidia and Tesla.

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From GOOGL, AAPL and AMZN to META, MSFT, NVDA and TSLA, Magnificent Seven stocks represent about half of the Nasdaq’s weighting.

Unlike the price-weighted Dow Jones Industrial Average, the Nasdaq and S&P 500 composite indexes are market capitalization weighted.

As a result, the combined market capitalizations of Magnificent Seven stocks have a disproportionate influence on the Nasdaq Composite and the Nasdaq 100.

To help resolve this issue, Nasdaq rebalanced the index on July 24. This reduced the individual weighting of Magnificent Seven shares. But the rebalancing simply changed the total weight of these seven megacaps from more than 50% to almost 50%.

In short, the Nasdaq 100 remains heavily concentrated in these mega-cap growth stocks.

Top Funds Gorge on Nvidia, Meta and this AI-Free Sector

What percentage of the Nasdaq are the Magnificent Seven Stocks?

Here are the current individual market capitalization weights of Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia, and Tesla. The weightings will, of course, change as their market capitalizations fluctuate.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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