A key difference

Today, the "Magnificent 7"—Microsoft, Apple, NVIDIA, Amazon, Alphabet, Meta, and Tesla—account for 31.3% of the total market capitalization of the U.S. stock market. This is a considerable increase compared to the 19% share held by the top 7 tech companies at the height of the dot-com bubble. However, there is a key distinction: today’s tech giants are far more profitable, maintain stronger balance sheets, and trade at significantly lower valuations than their counterparts in the early 2000s.