To beat the market in recent years, many investors applied a simple strategy: Load up on the biggest US technology stocks.
It paid handsomely for a long time. But last year, it didn’t. For the first time since 2022, when the Federal Reserve started raising interest rates, the majority of the Magnificent 7 tech giants performed worse than the S&P 500 Index. While the Bloomberg Magnificent 7 Index rose 25% in 2025,compared with 16% for the S&P 500, that was only because of the enormous gains by Alphabet Inc. and Nvidia Corp.
“Automation in warehouses and more efficient shipping will be huge,” said Clayton Allison, portfolio manager at Prime Capital Financial, which owns Amazon shares. “It hasn’t gotten the love yet, but it reminds me of Alphabet last year, which was sort of left behind amid all the concerns about competition from OpenAI, then really took off.”
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