Last year, the US Magnificent Seven stocks fell short of the extraordinary performance that investors worldwide have come to expect.
Only two Mag 7 shares delivered impressive capital growth, while the other five underperformed the major US indices.
Yep, they underperformed.
The health of the Mag 7 companies matters to Australian investors because we are heavily invested in them, whether we like it or not.
Got a superannuation fund? Chances are a chunk of your retirement savings are invested in these seven high-tech companies.
Own exchange-traded funds (ETFs) tracking the US or global markets?
You're definitely invested in the Mag 7 stocks.
The Mag 7's high market caps mean they dominate the S&P 500 Index (SP: .INX) and the Nasdaq Composite Index (NASDAQ: .IXIC).
Therefore, their performance has a direct impact on many Australians' investments.
Let's take a look at how the Magnificent 7 stocks performed in 2025, starting with the No. 1 riser.
And no, it's not the stock you think!
Image source: Getty Images
Magnificent Seven stocks in 2025
To set the scene for you, the S&P 500 rose 16.39% and the Nasdaq Composite lifted 20.36% last year. (Compare that to ASX shares here.)
Here's how the Magnificent Seven stocks compared to the broader market.
1. Alphabet Inc Class A (NASDAQ: GOOGL)
Both Class A and Alphabet Inc Class C (NASDAQ: GOOG) shares lifted 65% in 2025.
Class A stock closed at US$313 per share, and Class C shares closed at $313.80.
Nvidia Corp (NASDAQ: NVDA)
US stock market darling Nvidia still put in a good performance as it continues to leverage the artificial intelligence megatrend.
Stock in the US graphics and AI chip designer rose 39% to close at US$186.50 per share on 31 December.
In October, Nvidia became the first company in the world to reach a US$5 trillion market cap.
Investment platform Stake reports that Nvidia was one of the five most traded US stocks by Australian traders last year.
According to Stake's 2025 Retail Investor Report Card:
It beat revenue estimates every quarter in 2025 by an average of 8.9% and is on track to generate US$212B in FY26.
Its earnings have become a global market catalyst: Nvidia's results serve as a directional signal for traders worldwide.
For Stake investors, the biggest 'buy-the-dip' moment came during the DeepSeek moment in January, when Nvidia lost US$260B in market cap but buy orders surged 460%.
Microsoft Corp (NASDAQ: MSFT)
The Microsoft stock price rose 15% to close 2025 at US$483.62 per share.
Meta Platforms Inc (NASDAQ: META)
Meta Platforms shares rose 13% to finish the year at US$660.09.
Tesla Inc (NASDAQ: TSLA)
Stock in electric vehicle manufacturer Tesla rose 11% to US$449.72 per share.
Stake analysts said Tesla was the only Magnificent Seven stock not to set a new share price record in 2025.
Apple Inc (NASDAQ: AAPL)
US technology stock Apple rose by 9% to close at US$271.86 per share on 31 December.
Amazon.com, Inc. (NASDAQ: AMZN)
The Amazon share price inched 5% higher to close at US$230.82 on 31 December.
Interesting sidenote
My US Fool colleague Trevor Jennewine recently covered the third-quarter report from Warren Buffett's Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B).
The report showed that the 'Oracle of Omaha', who retired at the end of last year, bought Alphabet stock — the best performer of the Magnificent Seven in 2025 — and continued to sell down Apple — the second-worst performer of the group — during the third quarter.
Berkshire Hathaway purchased 17.8 million shares in Alphabet, which now accounts for 2% of the company's $267 billion portfolio of 41 stocks.
Berkshire sold 41.7 million Apple shares, and although the company remains Berkshire's largest holding at 21%, its position has reduced by 74% in just two years.
