What is Magnificent 7?
Magnificent 7
The Magnificent 7 is a group of major tech companies consisting of Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla, known for their outsized influence on the S&P 500 index. The material tracks their relative performance against the broader market and their capital allocation strategies.
How it developed
- May 2026 - A source noted that many of the Mag 7 are unable to do buybacks because they are using free cash flow to invest in VEX and capback.
- Jun 2026 - Ryan Detrick said that over the prior 27 days, the other 493 stocks in the S&P 500 outperformed the Mag 7 by 18%, the largest spread since 2018.
- Jun 2026 - Josh Brown reported that the MAG 7 or equal-weight tech (RSP) was up 39%.
- Jun 2026 - Jeremy Grantham stated, ‘There’ll only be one survivor,’ referring to the Mag 7.
In the evidence
Every line below is attributed to a named speaker.
Over the last 27 days, the S&P 493 (equal-weight ex-Magnificent 7) outperformed the Magnificent 7 by 18%, the largest such spread since 2018.
“Over the last 27 days, the 493 are outperforming the Mag 7 by 18%. That's a gigantic spread. In fact, it's the most that we've seen since 2018.”Ryan Detrick · 26 Jun 2026
Equal-weight tech (RSP) is up 39% year-to-date while the Magnificent 7 are flat, signaling broad-based tech market participation.
“The MAG 7 or flat equal weight tech RSP is the ticker is up 39%.”Josh Brown · 19 Jun 2026
Grantham predicts only one of the Magnificent 7 will survive the AI competition, counter to consensus that multiple will dominate.
“There'll only be one survivor.”Jeremy Grantham · 25 Jun 2026
Many Magnificent 7 companies are currently unable to execute share buybacks because free cash flow is being redirected entirely into capex, removing a key historical support for their stock prices.
“A lot of the mag 7 is not able to do buybacks right now because they're using their free cash flow to invest in VEX and capback.”<UNKNOWN> · 12 May 2026