Since the explosion of AI, global markets have witnessed the rise of large-cap technology stocks, known as the “Magnificent 7”.
It consists of seven US giants, Apple, Microsoft, Alphabet (Google), Amazon, Meta, Nvidia and Tesla.
As a result of tech stocks' spectacular rally fueled by the AI boom, the group's combined market capitalization has jumped 60% or $4.1 trillion this year, to $11 trillion.
That figure is nearly three times larger than Germany's economy, which will be worth more than $4 trillion by the end of 2022.
Apple fans will know that the company's value soared past $3 trillion last week, making it the first ever to reach that milestone.
Microsoft, on the other hand, has the potential to be the next technology stock to reach that valuation, according to Morgan Stanley.
Meanwhile, Santa Clara-based chipmaker Nvidia has seen a nearly 200% surge this year that has pushed its market cap to $1 trillion for the first time in history.
Tesla is up 126% this year thanks to electric vehicle (EV) demand supported by price cuts, charging technology deals with rivals Ford and GM, and investor frenzy over AI.
Those seven stocks have been responsible for most of the gains in the S&P 500 this year, and have helped propel the benchmark index to an uptrend.
