Only one "Magnificent Seven" stock beat the S&P 500 through the first half of 2026: Alphabet, up around 13%. Apple and Nvidia rounded out the group's top three, but neither kept pace with the index. Excitement around the biggest names in tech has cooled.
Alphabet was the top-performing stock in the Magnificent Seven as of the end of June, up around 13%, and the only one in the group to beat the S&P 500. The index was up less than 10% over the same stretch, so the rest of tech's biggest names fell short. Across the group, gains this year have been lackluster.
Alphabet leads on strong search and AI
Alphabet's advertising and search segments remained strong despite investors' initial concerns about AI. Its top line rose 22% during the first three months of 2026, totaling nearly $110 billion. Its Gemini chatbot is a significant threat to OpenAI's ChatGPT.
At 27 times trailing earnings, Alphabet is the cheapest stock on this list. That relatively modest valuation leaves room for more upside given its growth and AI opportunities.
Nvidia and Apple round out the top three
Nvidia came in behind Alphabet, up just 7% as of the end of June. It is already the most valuable company in the world with a market cap of $4.7 trillion. The chipmaker posted growth of 85% in its most recent quarter, which ended on April 26, and it trades at an earnings multiple of 30.
Apple took the third spot, up around 6% at the end of June. Investors were underwhelmed by its AI strategy, yet its results still look solid. The company has been battling higher costs from soaring memory and storage prices, and it has already raised prices on products including MacBooks and iPads.
Apple's valuation sits at 37 times trailing earnings, the richest of the three, which could limit its gains from here if its growth rate slows.
Source: Yahoo Finance
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