Wall Street’s Magnificent Seven shed $2 trillion since April 2; Nvidia up 25% in 5 days, Tesla biggest loser in 2025

Wall Street's Magnificent Seven: The US tech megacaps have shed nearly $2 trillion since April 2, 2025, when US President Donald Trump announced sweeping reciprocal tariffs on nations worldwide, escalating a potential global trade war. Wall Street's elite "Magnificent Seven" stocks amassed over $1.5 trillion in market value last week after Trump paused tariffs for 90 days, easing pressure on tech giants that had tumbled earlier in sessions.

These seven US tech giants, comprising the elite ‘magnificent seven’ pack, are companies at the forefront of sectors such as artificial intelligence (AI), electric vehicles, cloud computing, and digital services. They still have the potential for significant growth, but according to experts, investing in them still carries risks since these factors have already been priced.

Also Read: Tech giants Nvidia, Tesla emerge top US-listed stock picks by Indians in 2024; ETFs gain

Wall Street's elite ‘Magnificent Seven’ —What are they?

The term ‘magnificent seven’ has been popularized to describe a set of dominant companies, particularly in the US tech sector. The group comprises the top seven US tech leaders - Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. They span four sectors: technology services, electronic technology, retail trade, and consumer durables.

They operate in internet software/services, telecommunications equipment, internet retail, packaged software, semiconductors, and motor vehicles. Over the past five years, Nvidia has led the pack with an impressive return of approximately 3,000 per cent, closely followed by Tesla with a 1,200 per cent gain.

Also Read: 'Magnificent Seven’ Review: Nvidia soars 183% YTD to lead US tech pack in 2024; Meta ranks second; Full list

Magnificent Seven's rally on tariff pause

The seven US tech megacaps rallied on Wednesday after Trump paused the reciprocal tariffs on all nations, except China, for 90 days. However, the gains did not erase the $3.4 trillion in value that the tech-heavy Nasdaq majors have collectively shed since their peak in late 2024. 

On Wednesday, shares of AI chip giant Nvidia, Apple, Tesla, Microsoft, Alphabet, Facebook-parent Meta and Amazon - closed higher between 9.68 per cent and 22.69 per cent, powering a market rally that pushed the Nasdaq up over 12 per cent.

Alphabet reiterated on Wednesday that it would spend about $75 billion this year to expand data centre capacity, while Microsoft said it was on track to spend more than $80 billion to develop its data centre infrastructure.

During the pause period, Trump maintained a 10 per cent baseline tariff while raising tariffs on Chinese imports to 125 per cent. "This led to surges in global equity markets, with indices in the US, Europe, and Asia experiencing gains. Sectors that were previously under pressure due to tariff concerns may experience a rebound, contributing to the overall positive outlook for the Indian markets," said Justin Khoo, Senior Market Analyst - APAC, VT Markets.

Also Read: US stock market jumps after Donald Trump’s tariff pause; Nasdaq spikes 12%, S&P 500 sees biggest gain since Oct 2008

Nvidia emerges Mag 7 winner in 2025, Tesla biggest drag

In comparison, Tesla has emerged as the biggest loser out of all seven stocks in 2025 so far, with a crash of 34 per cent year-to-date (YTD). On the other hand, shares of Nvidia have surged 25 per cent alone in the last five sessions. However, Tesla has gained 10 per cent in one month and 13 per cent in five days.

Nvidia has shed 20 per cent YTD, dragged by investors' interest in China's AI counterpart, DeepSeek. Shares of Meta have risen 12.3 per cent in five days but have crashed 10 per cent YTD. Shares of Tim Cook-led Apple have gained 12 per cent in five days but tanked 10 per cent in one month and 19 per cent YTD. Shares of Microsoft have also risen 11 per cent in five days but cracked seven per cent YTD.

In 2024, investor's favourite AI chip manufacturing giant Nvidia emerged as the top gainer in the magnificent seven-pack, with its stock price soaring as much as 183 per cent. Nvidia was followed by Meta, which ranked second in the US tech giant pack last year. Nvidia is a frontrunner so far in 2025.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.