Nvidia Powers AI-Driven Rally as Microsoft Joins $15 Trillion Tech Boom
MSFT•Since the S&P 500 bear-market low on October 12, 2022, the Magnificent Seven megacaps have added nearly $15 trillion in combined market value, with Nvidia contributing almost $5 trillion and Microsoft ranking fourth in gains. Nvidia’s share of the group has risen from under 4% to about 23%, reshaping an AI-driven rally that has bolstered Microsoft’s cloud and AI services.
1. Bull Market Rebound
The S&P 500 bottomed on October 12, 2022, but the Magnificent Seven—Apple, Alphabet, Microsoft, Amazon, Meta, Tesla and Nvidia—did not hit their trough until late December, lagging the broader index’s 6% rise. From that group trough, the seven stocks have collectively added nearly $15 trillion in market capitalization.
2. Nvidia’s Dominance
Nvidia has been at the center of the AI-driven phase of the bull market, adding roughly $5 trillion since the October 2022 low, accounting for one-third of the group’s total gains. Its weighting in the Magnificent Seven has surged from under 4% to about 23% as investors pour into AI computing platforms.
3. Microsoft’s Contribution
Microsoft ranks fourth among the group in added market value, benefiting from accelerated demand for its Azure cloud and AI services. The company’s integration of AI tools into enterprise software and cloud offerings has been a key driver of its share-price outperformance.
4. Market Weight Realignment
While Apple’s weight in the Magnificent Seven has fallen from nearly 30% to under 18%, Nvidia’s rise underscores a shift toward AI leaders. Microsoft maintains a top-tier position, but its relative weight has been eclipsed by Nvidia’s rapid ascent.
