Top Analysts Break Up 'Magnificent 7': Only Nvidia, Microsoft, and Apple Lead the Market

Citi says the Magnificent 7 are splitting apart and investors should watch Nvidia NVDA, Microsoft MSFT and Apple AAPL more closely than the group as a whole, according to a Citi note.

Nvidia stands out for AI chips that power model training and data centers, a key driver of its gains. Microsoft benefits from cloud strength and AI integrations across Azure. Apple's vast ecosystem and growing AI features make it an important growth anchor.

The other four, Alphabet GOOGL, Amazon AMZN, Meta META and Tesla TSLA, have shown more mixed results this year and may move independently rather than with the leaders.

Together the seven firms hold more than $22 trillion in market value and account for roughly 37% of the S&P 500, giving them outsized influence on index moves.

Citi basis is essentially abandoning the entire cohort play and concentrating on picking the big bellwethers that even suggest the health of the mega-cap growth trade by 2026. Customers are likely to be choosy, micro-targeting company-specific movers, such as AI chip, cloud demand and the device ecosystems that will most likely fuel growth.