As of June 3, 2025, the “Magnificent Seven” (Mag 7) tech stocks—Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta Platforms—have experienced a volatile year, marked by a significant rally in May but still facing year-to-date challenges. 

In May, the group collectively surged over 13%, marking their strongest monthly performance in two years. This rebound was fueled by easing trade tensions and investor optimism surrounding artificial intelligence (AI) advancements. However, despite this uptick, the Mag 7 remains in negative territory for the year, alongside crude oil, among 32 asset classes tracked by Deutsche Bank .  

Apple has been the group’s worst performer, with shares down 20% year-to-date, impacted by U.S.-China trade tensions and delayed AI integration. Nonetheless, analysts see long-term potential, citing Apple’s robust ecosystem and strategic shifts in production . 

Tesla has also faced challenges, with a 28% decline in 2025, attributed to slowing sales and investor concerns over CEO Elon Musk’s political involvement . 

Conversely, Nvidia has shown resilience, with a 24.3% increase in May alone, driven by strong earnings and continued optimism around AI investments . 

Despite the recent rally, valuations remain high, with the group’s average price-to-earnings ratio significantly above historical norms, potentially limiting further gains . Analysts caution that elevated spending on AI infrastructure by companies like Alphabet and Meta could become a liability if economic conditions deteriorate. 

In summary, while the Mag 7 have demonstrated resilience and potential for long-term growth, investors should remain cautious due to high valuations and ongoing economic uncertainties.