Global Analysts Embrace "Magnificent" Trend Beyond US Tech Giants

Key Takeaway

• The "Magnificent Seven" moniker, originally describing US tech megacaps, has inspired global analysts to label high-growth stocks similarly.
• Regional adaptations include Japan's version by Goldman Sachs and Europe's Magnificent Eleven featuring GSK Plc and ASML Holding NV.
• The term's broad application highlights the dominant performance of US tech giants like Apple Inc. and Nvidia, influencing various financial sectors.

Global Adoption of "Magnificent" Moniker

The recent surge in the Magnificent Seven tech megacaps has sparked a trend among analysts worldwide to apply similar labels to other high-growth stocks. The term has been embraced in various regions, with different groups of stocks being dubbed as the equivalent of the Magnificent Seven that have been driving US stocks to record highs.

Regional Equivalents Emerged

Analysts from Goldman Sachs Group Inc. in Tokyo identified a group of stocks in Japan that could be considered as the country's version of the Magnificent Seven. Similarly, an independent equities analyst publishing on Smartkarma introduced 'Europe's Magnificent Eleven,' featuring prominent names like GSK Plc, Roche Holding AG, and ASML Holding NV. In Pakistan, Chase Securities labeled the nation's top tech company Systems Ltd. and major utility Hub Power Co. as 'Pakistan's Magnificent Seven.'

Magnificent Seven Phenomenon

The widespread adoption of the term in research reports underscores the remarkable rise of the US tech megacaps. The index comprising Apple Inc., Microsoft Corp., Nvidia, Alphabet Inc., Amazon.com Inc., Meta Platforms Inc., and Tesla Inc. more than doubled in value last year, outperforming the S&P 500's gain.

Diverse Applications of the Term

Beyond stocks, the Magnificent Seven label has transcended into other areas of the financial world. Macro research provider Qi Analytics titled a recent note 'Magnificent Macro Momentum,' while Nuveen's Chief Investment Officer Saira Malik referenced one of her weekly commentaries as 'Magnificent Munis.' Coined by Michael Hartnett of Bank of America Corp., the term draws inspiration from the 1960 Western classic, symbolizing a group of seven gunmen and has now become synonymous with the US tech majors.