Only 3 of the "Magnificent Seven" Stocks Have Been 10-Baggers Over the Past 10 Years

The "Magnificent Seven" stocks have been top investments over the years. Not only have they generated fantastic returns, but they are also large businesses to invest in, and thus can be safer than many other stocks.

They are all household names: Alphabet, Amazon, Apple, Meta Platforms, Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA).

But just because they are magnificent doesn't mean they have all been 10-baggers over the past decade. If you invested $10,000 into each of the Magnificent Seven stocks, only three of them would have turned that into more than $100,000 today. Here's how the top performers have done during that stretch.

Nvidia: $1.7 million

Chipmaker Nvidia is unsurprisingly at the top of this list. Artificial intelligence (AI) and a huge demand for the company's chips made it the hottest tech stock in the past few years. Investing $10,000 into the stock 10 years ago would have made that investment worth close to $1.7 million today.

The company's strong top- and bottom-line growth makes this a truly phenomenal stock. In its most recent quarter, for the period ending Jan. 28, Nvidia reported revenue of $22.1 billion, which rose by 265% from the prior-year period. Diluted earnings per share (EPS) of $4.93 rose at an even more incredible rate of 765%.

As AI continues to change industries, it's hard not to like Nvidia for the long run. The only caveat: Investors might want to temper their hopes since expectations could be a bit high for the stock, and at a high valuation, that could make it vulnerable down the road to a correction.

Tesla: $116,000

Shares of electric-vehicle (EV) maker Tesla have been under pressure of late as the company has been reducing prices and facing greater competition. During the last quarter of 2023, Chinese-based BYD reported more EV sales than Tesla. Since the start of the year, Tesla's stock declined by 23%.

But overall, this has still been one of the best performing Magnificent Seven stocks over the past decade, with a $10,000 investment in Tesla now worth approximately $116,000.

Investors shouldn't forget that this has been an impressive business, going from an unprofitable and risky EV stock to one of the leading car brands in the world. From just $2 billion in revenue in 2013 to $97 billion this past year, the company's growth has been stellar.

The company does face some challenges. And here, too, its valuation does make it a bit of a riskier buy -- it's trading at 61 times its estimated future profits. But if you're bullish on the EV market, Tesla could still make for a good long-term hold.

Microsoft: $109,000

At $109,000, Microsoft is another stock that would have been a 10-bagger investment over the past decade. Shares of the company have gone into another gear since the emergence of ChatGPT and Microsoft's investments into AI.

It has launched Copilot, which is a chatbot that can help people take advantage of AI while using its Microsoft 365 office software. Management has also invested $13 billion in OpenAI, the company behind ChatGPT. That close relationship has certainly helped build optimism behind Microsoft.

CEO Satya Nadella said, "By infusing AI across every layer of our tech stack, we're winning new customers and helping drive new benefits and productivity gains across every sector." For the last three months of 2023, the company reported revenue of $62 billion, which was up 18% year over year. Net income of $21.9 billion was even more impressive, rising by 33%.

At 35 times expected future profits, Microsoft is a pricey stock right now. But if you're willing to buy and hold for the long term, the tech company can still be an excellent investment given its strong position in the industry and the opportunities for AI to enhance its business.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, BYD, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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