Magnificent 7 Monthly: May 24 – Best month this year June 12, 2024 128

• MAG-7 gained +9.5% in May, its best performance this year. Equity markets rebounded from a weak April, with major indices like the S&P 500 and the Nasdaq 100 both gaining +4.8% and +6.3%, respectively.
• NVDA (+24.9%) was the biggest gainer after it issued better-than-expected FY1Q25 results driven by increasing AI demand for its GPUs. TSLA (-2.8%) was the laggard, as production numbers from China remained weak.
• Robust AI demand remains the key narrative for Mag-7 companies, while we also see PCs picking up due to enterprise upcycling. iPhone demand remains soft, while EV unit volumes and pricing remain suppressed due to increasing competition and decreasing consumer appetite. We maintain OVERWEIGHT on the MAG-7.




















The Magnificent-7 gained +9.5% in May, its best monthly performance YTD. Equity markets were also very positive after 1) strong 1Q24 earnings (~75% of S&P 500 companies outperformed expectations) and 2) FOMC minutes, which indicated Fed Chair Powell taking rate hikes off the table for 2024. Major indices like the S&P 500 and Nasdaq 100 both went
up +4.8% and +6.3%, respectively.


Gainers: NVDA (+24.9%) was the biggest gainer as its 1Q25 earnings results beat both top and bottom line estimates, driven by continued demand for its AI GPUs (Hopper +
Blackwell). The company also increased its quarterly dividend by 150% and initiated a 10-for-1 stock split.

Laggards: TSLA (-2.8%) was the biggest laggard – and the only decliner for May due to weaker production numbers out of China and decreasing consumer appetite for EVs. TSLA remains the biggest laggard YTD (-28.1%)

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