Magnificent 7 stocks: where they stand after Meta's plan to raise up to $97.5 billion

Thomas Rebaud, CEO @akka.app

October 27, 2026

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6 min read

Magnificent 7 stocks

Meta planned raise

Up to $97.5 billion

Largest, 26 Oct 2026

Nvidia at $5.22 trillion

Share of S&P 500

About 34% as of August 2026

The Magnificent 7 are Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. They are seven very large US companies grouped by size and market influence, not by a shared business. The label is a nickname, not an index you can buy.

On 26 October 2026, Meta announced plans to raise up to $95 billion to fund its AI expansion, a total it lifted to $97.5 billion when it priced the deal. Up to $60 billion of that is a planned future share-sale programme that Meta does not expect to start before early 2027, so it is not money raised today. It matters because it shows how much AI infrastructure now costs, even for a company of Meta's size.

Key takeaways

The seven are Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla.
Meta's plan to raise up to $97.5 billion shows how expensive AI infrastructure has become.
An S&P 500 fund already owns all seven, so adding them separately makes your investments more dependent on them.

What the Magnificent 7 are, and why the name

"Magnificent Seven" is an informal market label from 2023. It replaced the older FAANG shorthand, which covered Meta, Amazon, Apple, Netflix and Alphabet. The newer group drops Netflix and adds Microsoft, Nvidia and Tesla.

A ticker is the short code used to trade a share. Alphabet uses GOOGL and GOOG. Amazon uses AMZN, Apple uses AAPL, Meta Platforms uses META, Microsoft uses MSFT, Nvidia uses NVDA and Tesla uses TSLA. Alphabet has two listed share classes. GOOGL Class A shares carry one vote each. GOOG Class C shares carry none.

Where each one stands in 2026

The table ranks the seven by market value at the close on 26 October 2026, using CompaniesMarketCap data. It also compares each company's role in AI and the main risk attached to it.

Company	Ticker	Market value (close, 26 Oct 2026)	Role in AI	Main risk
Nvidia	NVDA	$5.22 trillion	Sells key computing infrastructure	Demand cycles, customer concentration, export rules
Apple	AAPL	$5.02 trillion	AI features inside its devices	Dependence on device demand
Microsoft	MSFT	$3.95 trillion	Sells cloud and AI tools to businesses	Cost of building data centres
Alphabet	GOOGL / GOOG	$3.84 trillion	Own models, own chips, own cloud	AI answers changing search advertising
Amazon	AMZN	$2.69 trillion	Rents computing capacity through AWS	Heavy spending, thin retail margins
Meta	META	$1.61 trillion	Uses AI to improve ads and recommendations	Whether huge spending earns its money back
Tesla	TSLA	$1.55 trillion	Driver assistance, robotaxis, robotics	Promises not yet delivered

Microsoft reported fiscal 2026 revenue of $331.8 billion. Azure, its cloud business, grew 41% for the year and passed $100 billion in revenue. Microsoft said its Microsoft 365 Copilot assistant had more than 30 million paid seats.

Alphabet posted second-quarter 2026 revenue of $119.8 billion, with Google Cloud up 82% to $24.8 billion. The company said its Gemini app had 950 million monthly active users. The open question is whether AI answers keep search advertising as valuable as it is today. On 3 June 2026, Reuters reported that Alphabet had expanded its proposed equity raise to $84.75 billion for AI infrastructure.

Nvidia had revenue of $96.2 billion in its second fiscal quarter of 2027, including $89.0 billion from data centres, up 117% year over year. Its filing noted that one direct customer accounted for 16% of quarterly revenue, and that sales are concentrated among a limited number of customers. On 3 September 2026, Nvidia announced that it had agreed to buy AI developer platform Hugging Face for $12.93 billion.

Amazon grew AWS sales 37% to $42.2 billion in the second quarter of 2026. Over the previous 12 months, cash left after investment was negative $7.6 billion, which Amazon linked mainly to buying property and equipment for AI.

Meta reported third-quarter 2026 revenue of $64.6 billion, up 26%, with 3.64 billion daily active people across its apps. It said it expected to spend $135–$145 billion in 2026 on long-term equipment and buildings. Meta's financing plan highlights the scale of AI infrastructure spending.

Apple reported fiscal third-quarter revenue of $109.4 billion, up 16%, and said its active device base hit a record. Its AI arrives as features inside products people already own, including the new Siri AI released in September 2026.

Tesla delivered 486,532 vehicles in the third quarter of 2026, with revenue of $28.046 billion, roughly flat year over year. It reported 1.74 million active Full Self-Driving subscriptions and nearly two million cumulative unsupervised robotaxi miles by quarter-end. On 20 October 2026, Bloomberg reported that Tesla and SpaceX had formed special committees to explore a possible merger, with no terms agreed.

Who has the strongest AI exposure

Nvidia, by a wide margin on the numbers. Its $89.0 billion of quarterly data-centre revenue comes directly from the AI build-out. Microsoft, Amazon and Alphabet sit one step behind: they rent computing power and sell AI tools. Meta, Apple and Tesla mostly spend on AI to make their own products better.

One distinction is worth keeping in mind. Training an AI model is a large upfront cost. Running it for millions of users every day is a recurring one. The question for each company is not only who spends, but who can charge for the result.

Why these seven move the whole market

The S&P 500 weights companies by market value, so the biggest names move the index most. In September 2026, Charles Schwab put the Magnificent 7's combined share at about 34% of the index, using August 2026 data. If you hold a broad US index fund, roughly a third of it already sits in these seven.

That is why the group is often described as one bet. It is not. Nvidia sells hardware into a cycle. Apple sells phones. Tesla sells cars and a promise. Their fortunes can diverge sharply even when the label groups them together.

Three ways people hold them

Individual shares let you pick, with the company risk that comes with it. A broad index fund holds them already: an S&P 500 fund owns all seven, with the largest companies getting the biggest share, and a world fund can also include them. A dedicated fund such as Roundhill's MAGS gives each of the seven the same starting share and resets those shares every three months. Its annual fee was 0.30% on its official fund page in October 2026.

These are three different portfolios, not three routes to the same thing. Giving every company the same weight gives Tesla the same starting influence as Nvidia. An index weighted by market value does not do that.

Risks

A broad index fund plus individual Magnificent 7 shares is the same bet made twice.
A strong business can still be an expensive share if expectations are already high.
Data centres, chips and electricity cost money long before they earn any.
Competition cases, app store rules and export controls hit each company differently.
These shares trade in US dollars. Euro and krona investors also face changes in exchange rates.

This article is for information only and is not investment advice.

Frequently asked questions

Is the Magnificent 7 an official index?

No. It is a market nickname coined in 2023, not an official index.

What is the difference between the Magnificent 7 and FAANG?

FAANG covered Meta, Amazon, Apple, Netflix and Alphabet. The Magnificent 7 drops Netflix and adds Microsoft, Nvidia and Tesla.

What is the difference between GOOG and GOOGL?

Both are Alphabet shares that trade publicly. GOOGL is Class A and carries one vote per share. GOOG is Class C and carries no votes. Alphabet also has Class B shares with ten votes each, which are not traded publicly.

Does Meta's share sale change what existing shareholders own?

It can. If Meta issues new shares, each existing share represents a smaller percentage of the company.

Are all the big AI companies in this group?

No. Large listed chip companies such as TSMC and Broadcom are not in it. Listed shares are only part of the AI picture.

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