Stock Market Update: Nasdaq Completes Bull Market Transition; Question Arises: Is It Still Beneficial to Invest in Invesco QQQ ETF?
Investing in the AI Revolution: The Magnificent Seven and the Invesco QQQ ETF
The technology industry is currently experiencing a boom, with artificial intelligence (AI) at the forefront. One way to tap into this growth is through the Invesco QQQ ETF, a fund that tracks the performance of the Nasdaq-100, and its focus on the Magnificent Seven – seven leading companies in different AI segments.
The Magnificent Seven consists of Nvidia, Microsoft, Apple, Amazon, Alphabet (Google), Meta Platforms, and Tesla. These companies, collectively, represent a significant portion of the Nasdaq-100 index and the Invesco QQQ ETF. As of July 2, 2025, their respective portfolio weightings in the ETF are: Nvidia (9.12%), Microsoft (8.68%), Apple (7.55%), Amazon (5.55%), Alphabet (4.80%), Meta Platforms (3.68%), and Tesla (2.73%).
The Nasdaq-100, currently trading at a new record high, indicates a fresh bull market. This growth is largely due to the proliferation of technologies like AI, which has propelled the ETF to generate an accelerated annual return of 18.7% over the last 10 years.
Notably, Microsoft is commercializing an advanced AI assistant called Copilot and offers a growing portfolio of AI services through its Azure cloud platform. Microsoft's rival, Amazon, has also developed its own AI assistant, while Alphabet, through Google, continues to innovate in the AI space.
Meanwhile, Meta Platforms has created the Llama open-source large language models and has its own chatbot called Meta AI. Salesforce CEO Mark Benioff predicts agentic AI could become a $12 trillion market on its own.
The ETF's success is also evident in the performance of the Magnificent Seven stocks. Since the Nasdaq-100 set its bear-market bottom on April 8, 2025, these stocks have delivered average and median returns of 35%. Nvidia and Microsoft, two stocks in the Magnificent Seven, have set new record highs since April.
Nvidia CEO Jensen Huang thinks data center operators will be spending $1 trillion per year to build AI infrastructure by 2028. This forecast underscores the potential for continued growth in the AI sector.
Investors who buy the Invesco QQQ ETF will own a slice of the biggest players in each segment of the AI industry, making it an attractive option for those looking to invest in the future of technology.
The Nasdaq-100 is a stock exchange index consisting of 100 of the largest non-financial companies listed on the Nasdaq, making it a reliable indicator of the health of the technology sector. The Invesco QQQ Trust, the entity behind the ETF, tracks the performance of the Nasdaq-100, providing investors with a simple and effective way to gain exposure to the AI revolution.
However, it's important to note that portfolio weightings for the Magnificent Seven are subject to change, and investors should always conduct their own research before making investment decisions. The data for the Magnificent Seven's returns is sourced from YCharts.
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