Magnificent 7 Holds Greater Weight in the S&P 500 Than Ever, Yet Lacks Profit Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 19 2025
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Source: SeekingAlpha
Market Cap vs. Profit Discrepancy: The Magnificent Seven (Amazon, Alphabet, Microsoft, Meta Platforms, Nvidia, Apple, and Tesla) constitute 34.2% of the S&P 500's market cap but only account for 26.6% of its profits.
Nvidia's Performance: Nvidia shows the largest gap, representing 8.1% of the S&P index while contributing just 3.8% to its profits.
Alphabet's Contribution: In contrast, Alphabet has a market cap of 3.9% within the S&P 500 but contributes 5.7% of the profits.
Quant Grades Overview: The Magnificent Seven have mixed quantitative grades, with Amazon, Alphabet, and Microsoft all rated at 3.49, while Tesla has the lowest at 3.20.
Analyst Views on MAGS
Wall Street analysts forecast MAGS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MAGS is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 64.930
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Current: 64.930
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
