The "Magnificent Seven" stocks, Apple (AAPL Quick QuoteAAPL - Free Report) , Microsoft (MSFT Quick QuoteMSFT - Free Report) , Alphabet (GOOGL Quick QuoteGOOGL - Free Report) , Amazon (AMZN Quick QuoteAMZN - Free Report) , NVIDIA (NVDA Quick QuoteNVDA - Free Report) , Meta Platforms (META Quick QuoteMETA - Free Report) and Tesla (TSLA Quick QuoteTSLA - Free Report) , now account for almost 30% of the S&P 500 index. They were responsible for more than 62% of the S&P 500’s total return in 2023.

Most experts anticipated a broadening of the market rally in 2024; however, market leadership has narrowed further this year. These stocks have driven more than 80% of the index's rise.

All these companies benefited from the AI hype in 2023, but we've seen divergent performances in 2024 as investors assess which will emerge as the biggest beneficiaries of the forthcoming AI boom.

Nvidia and Meta are leading the group, while Tesla significantly lags. This divergence has expanded in the past few weeks, as all but one reported their financial results. Meta's results were particularly well-received, sending the shares of the social media giant up more than 20%.

Tesla has been punished for missing both earnings and revenue estimates. The EV giant’s earnings were down almost 46% amid weakening margins. The stock has lost 26% of its value this year.

While NVIDIA is yet to announce its results, its stock has already appreciated by 42% in 2024, following a 240% increase in 2023, as most other giants disclosed aggressive AI investments.

The Roundhill Magnificent Seven ETF (MAGS Quick QuoteMAGS - Free Report) provides equal weight exposure to these stocks. The Vanguard Mega Cap Growth ETF (MGK Quick QuoteMGK - Free Report) holds the largest growth stocks in the US. To learn about these and the Invesco NASDAQ 100 ETF (QQQM Quick QuoteQQQM - Free Report) , please watch the short video above.