What is MAG 7?
MAG 7
The MAG 7 is a group of high-performing and influential U.S. tech companies: Alphabet, Amazon, Apple, Tesla, Meta Platforms, Microsoft, and NVIDIA. The material tracks their financial performance, market dynamics, and evolving composition.
How it developed
- Jun 2025 – Philippe Laffont said the MAG 7 grew revenue over 20% compounded over the prior three to four years while employee and opex growth was only 2%, a historically unprecedented ratio.
- May 2026 – Kai Wu said his base case is that these companies will not go bust but may face a re-rating lower due to becoming more capital intensive.
- Jun 2026 – Josh Brown said the MAG 7 are negative on the year as a group if equal weighted.
- Jun 2026 – Jack Farley noted that the positive correlation among MAG 7 stocks flipped negative after Google announced an $80 billion equity issuance.
- Jul 2026 – Michael Batnick said the MAG 7 weight in the S&P 500 is dropping considerably because the MAG 7 is underperforming by a wide margin.
- Jul 2026 – Ron Baron said he likes to call it the MAG 8 at this point, including SpaceX.
In the evidence
Every line below is attributed to a named speaker.
Philippe Laffont on AI and the MAG 7 productivity divergence: a metric never seen before in tech history.
“The MAG 7 over the last three or four years, they've grown over 20% compounded, but the number of employees, their opex is growing at 2%. We've never seen this in the history of technology.”Philippe Laffont · 20 Jun 2025
MAG 7 companies grew revenue over 20% compounded over the last 3 to 4 years while headcount and opex grew only around 2%, an unprecedented divergence in tech history.
“The MAG 7 over the last three or four years, they've grown over 20% compounded, but the number of employees, their opex is growing at 2%. We've never seen this in the history of technology.”Philippe Laffont · 20 Jun 2025
Ron Baron coins 'MAG 8' to include SpaceX alongside the mega-cap tech leaders.
“I like to call it the MAG 8 at this point with SpaceX.”Ron Baron · 24 Jul 2026
The positive correlation between the DRAM ETF and Mag 7 hyperscalers flipped negative immediately after Google announced an $80 billion equity issuance.
“Then basically as soon as Google announced the offering of the $80 billion equity issuance, that positive correlation has flipped negative.”Jack Farley · 26 Jun 2026
The MAG 7, equal weighted, were negative on the year as a group at time of recording.
“The MAG 7 are negative on the year as a group if you equal weight them.”Josh Brown · 12 Jun 2026
Mag 7 stocks are underperforming by a wide margin in 2025-2026, causing their weight in the S&P 500 to drop considerably, reversing years of dominance.
“The mag 7 weight in the S&P has is dropping considerably because the mag 7 is underperforming by a wide margin.”Michael Batnick · 8 Jul 2026
Kai Wu predicts Mag 7 stocks face a valuation de-rating as heavy AI CapEx transforms them from asset-light to asset-heavy, utility-like businesses
“That is my base case, actually. So, I don't I don't think these companies are going to go bust. >> So, a re-rating lower? Yeah, if we get a re-rate just valuations have to be lower cuz you're more capital intensive.”Kai Wu · 15 May 2026