Nvidia (NVDA) didn’t start this bull market — but it has come to define it.
The S&P 500 (^GSPC) bottomed on Oct. 12, 2022, in the wake of the 2022 bear market. But the “Magnificent Seven” tech stocks — Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta (META), Tesla (TSLA), and Nvidia — didn’t fully join the party right away. The group’s index did not bottom until late December 2022 — a stretch when the S&P 500 rose 6% from its bear market low, while the Magnificent Seven fell another 12%.
Then the market’s leadership changed.
ChatGPT 3.5 launched on Nov. 30, 2022, and the next phase of the bull market quickly became an artificial intelligence trade, with Nvidia at the epicenter.
Since the S&P 500’s bear-market low, the Magnificent Seven has added nearly $15 trillion in market value. Nvidia alone accounts for nearly $5 trillion of that gain, or one-third of the total.
The scale extends beyond the one group of megacap stocks. The Magnificent Seven group of stocks has accounted for nearly half of the S&P 500’s total market-cap gain over that stretch, turning a handful of tech giants into the dominant engine of the broader bull market.
Alphabet (GOOGL) ranks second, adding nearly $3 trillion, followed by Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), Meta (META), and Tesla (TSLA).
But Nvidia’s journey has had its setbacks.
The stock stumbled at times and has helped drive some of the Magnificent Seven’s pullbacks. But across the major upside waves, it has usually been the stock doing the most work.
That is still true in the latest rebound. Since the March 30 market low, Nvidia has added nearly $1.2 trillion in market value, more than any other Magnificent Seven stock.
Read more: How does Nvidia make money?
The reshuffling inside the group is almost as striking as the gains themselves.
Apple has added roughly $1.8 trillion in market value during the bull market, but its weight within the Magnificent Seven has fallen from nearly 30% to just under 18%.
Nvidia moved the other way, rising from less than 4% of the group to about 23%.
Apple is still one of the world’s biggest companies. But this is no longer an Apple-led megacap trade. The AI boom has remade the Magnificent Seven around Nvidia.
Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.
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