The Magnificent Seven—Apple, Microsoft, Amazon, Alphabet, Meta Platforms, Nvidia, and Tesla—continued to dominate the US equity landscape during the September quarter.
These seven companies now represent more than a third of the S&P 500’s total market capitalisation, underscoring their outsized influence on broader market movements. Their performance has become a key driver of index returns, particularly for the Nasdaq 100 and S&P 500.
Collectively, the group posted a 17.5% gain year-to-date through late September, significantly outperforming the broader market. Nvidia led the charge, buoyed by surging demand for AI chips and infrastructure. Tesla rebounded sharply, rising 30% in September alone, as investors responded positively to its strategic pivot toward robotics and artificial intelligence. Meta, Alphabet, and Microsoft delivered solid returns, while Apple and Amazon showed signs of recovery heading into the final quarter of the year.
These companies remain central to the AI revolution, with Nvidia, Microsoft, and Meta seen as the most strategically positioned. Tesla’s narrative has evolved toward “embodied intelligence,” with growing interest in its humanoid robotics and autonomous vehicle technologies.
Despite their strong fundamentals and innovation pipelines, the sheer concentration of market value in these seven stocks raises concerns about systemic risk. A significant correction in any of these names—or the group as a whole—could have outsized impacts on major indices and investor portfolios, amplifying volatility across global markets.
30 September 2025
By Jenaia Clarke, Financial Adviser
CP Wealth