Jim Cramer, the host of Mad Money, on Tuesday walked viewers through how the Magnificent Seven stocks performed during 2025.
“Now that we’ve turned the page in the calendar to 2026, I want to talk about the Magnificent Seven. Like it or not, Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA, and Tesla weigh in at roughly 35% of the S&P 500. For three years now, these stocks have been the entire ball game for most people, even if some of them occasionally fail to please the trading-oriented hedge fund managers. In 2025, the Mag Seven still rallied 22% on average despite rolling over near the end of the year. Not as good as the past, but still better than the S&P’s gain of 16%. Of course, that’s down from 111% gain in 2023 and a 60% average gain in 2024.”
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Cramer also said that there is a clearer separation among individual names within the group. He highlighted that Alphabet jumped 65% last year, while Amazon managed only a 5% gain. He added that the bulk of the outperformance came from Alphabet and NVIDIA, while the other five members of the Magnificent Seven trailed the S&P 500.
“Here’s the bottom line: Even the laggards of the Magnificent Seven have a lot going for them, which is why we own six of the seven for the Charitable Trust. As I say in my new book, How to Make Money in Any Market, they are still the best companies our nation has to offer.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on January 6. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2025, which was taken from Insider Monkey’s database of 978 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer Recently Reviewed the Magnificent Seven Stocks
7. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 332
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Magnificent Seven stocks Jim Cramer recently reviewed. Cramer noted that he is quite optimistic about the stock for 2026, as he commented:
“Finally, there’s Amazon, another Charitable Trust name… It finished last year up just over 5%… Muted overall performance, missed some very positive things. When Amazon reported its latest quarter at the end of October, that was a major positive catalyst as their web service business put up terrific numbers, that was one I was worried about, growth accelerating to more than 20%, the highest level since the third quarter 2022. I feel very good about that business after speaking with Amazon Web Services CEO Matt Garman about a month ago… He was terrific. On top of that, Amazon made a big investment in Anthropic, one of my absolute faves. They’re already using AI and robotics to enhance the retail business. I was on Rufus maybe 20 times in the last three days. Rufus has really improved, and I’ve gotta tell you, Anthropic is great. It’s a business-to-business service. It’s going to be wildly profitable very soon. The retail business continues to do well with double-digit growth both domestically and internationally for the past two quarters. Yes, Amazon’s still spending heavily on AI infrastructure like many of the Magnificent Seven compadres, but it’s very clear how these investments can directly make them money. So to me, that spending is easier to swallow. I’m looking for Amazon to put up much bigger gains in 2026 and it seems like I’m not alone because… the stock soared nearly 5% over the past three sessions. It’s been magnificent.”
Amazon.com, Inc. (NASDAQ:AMZN) sells consumer goods and digital content through online and physical stores, provides advertising and subscription services, operates Amazon Web Services for cloud computing, develops electronic devices, produces media content, and offers programs supporting third-party sellers and content creators.
6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is one of the Magnificent Seven stocks Jim Cramer recently reviewed. Cramer noted how the company proved the doubters wrong, as he remarked:
“Apple’s next up… It only went up about 9% last year. This one’s different. Apple stock was beaten down in early 2025 because of the same worries we always hear about: can their growth re-accelerate? Will iPhone sales be weak? Will the China business ever turn around? And of course, last year, we also got the tariff worries with President Trump going after their two key sources of manufacturing, China and India. Ultimately, Apple took those tariff concerns off the table by announcing a massive domestic investment agenda that won the company some key exemptions and won over the president, and the stock came roaring back.
Apple also helped itself by posting several strong quarters with sales growth accelerating over the course of the year. But what really got this stock going this fall was the iPhone 17 launch. We all heard it was going to be weak from Wall Street over and over and over again. It was a huge hit. Plus, when Wall Street decided to start worrying about all the spending on AI data centers, the guys at Apple suddenly looked like geniuses for not getting involved in this game.
Remember, people thought they were doofuses before this. You know where I come down on Apple, as always I say own it, don’t trade it… I think the strong iPhone cycle can continue and it wouldn’t surprise me if Apple can sign a big deal to get billions of dollars in exchange for making some generative AI platform the default on the iPhone… Stock has quietly pulled back over 9% from its early December all-time highs, currently trading at 32 times this year’s earnings estimates. It’s not cheap, but I think Apple deserves a premium multiple given how great it is.”
Apple Inc. (NASDAQ:AAPL) manufactures and sells devices such as the iPhone, Mac, iPad, along with its line-up of wearables and accessories. The devices are supported by the company’s app ecosystem, AppleCare, and cloud tools.
5. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 120
Tesla, Inc. (NASDAQ:TSLA) is one of the Magnificent Seven stocks Jim Cramer recently reviewed. Cramer called the company’s CEO a “great business person,” as he commented:
“In fifth place was Tesla, which was all over the map last year, but ultimately used a late-year rally to finish 2025 up over 11%. Tesla remains an enigma. The core electric car business, I’m calling it awful, down for the second straight year. Earnings are down about 60% from their peak in 2022. But you know what? It doesn’t matter. Pointing that almost feels like a waste of breath because the investors in Tesla, they do not care. CEO Elon Musk is a great business person, an even better sense of showmanship. So we got everyone focused on the future opportunities in robotaxis and humanoid robots. Those cars are on the road in Austin, Texas. And by the way, those are the cars we care more about than the sedans you might buy. In the end, Musk needs to make progress on both these fronts to keep shareholders’ base happy, although it sure wouldn’t hurt if he could stabilize Tesla’s auto business. But it won’t matter to some of these bulls who know that Musk’s robot initiative may be the best thing going in that space.”
Tesla, Inc. (NASDAQ:TSLA) designs and sells electric vehicles and also develops and installs solar energy and storage systems for residential, commercial, and industrial customers. In addition, the company is working on autonomous vehicles and robots.
4. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the Magnificent Seven stocks Jim Cramer recently reviewed. Cramer highlighted why it is a big position in the Charitable Trust. He stated:
“Next is Meta Platforms, yes, it gained less than 13% last year. Wow. Now this is another company that looked unassailable for most of 2025, but pulled back hard after its latest quarter in late October. Just like Microsoft, Meta’s stock rolled over. Management’s forecast for higher investment spending did it. They’re still shelling out fortunes for AI. Their CapEx budget for next year should come in at 70 to 72 billion, and CFO Susan Li said that CapEx dollar growth will be notably larger this year, so maybe 70, 72 goes to 100. On top of that, Meta doesn’t have, to me, a clear AI strategy. They don’t have a leading generative AI platform that can compete with Google’s Gemini or OpenAI’s ChatGPT. They don’t have a cloud infrastructure business that can rival Amazon, Microsoft, Google, or even Oracle…. See, I am a big believer in this technology, but it would be great to have more clarity on what Meta is doing with it beyond making better targeted ads, which they are the best at in the world.
Of course, Meta is still dominant in digital advertising. And between Instagram and Facebook, and then don’t forget WhatsApp, they have a massive user base, which gives them a gigantic advantage. Plus, I have a ton of confidence in Mark Zuckerberg. That is why we still own it for the Charitable Trust, big position. Oh, and to be sure, I don’t think Meta will have to spend all that much… what people think it will because I think it’s going to be hard to spend that much. I think Zuckerberg will blunt any inroads OpenAI might be making on social, he can crush them, but there’s a power gating, I call it power gating. It’s just really hard to spend as much as you’d like because you can’t build as much as you want, labor, materials. So I think he’ll be constrained. I think it’s going to be positive for you if you own the stock.”
Meta Platforms, Inc. (NASDAQ:META) develops technologies and applications that connect people through social networking and messaging. The company’s portfolio includes Facebook, Instagram, WhatsApp, Messenger, Threads, and products in virtual and augmented reality.
3. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is one of the Magnificent Seven stocks Jim Cramer recently reviewed. Cramer said that he thinks the company is “doing fine,” as he remarked:
“The third-best performer in the Mag Seven last year, Microsoft was humming until late July. It peaked at… 555 bucks. Then it started getting hit and failed to regain its old highs, finishing the year up just under 15%….. I watch it go down every day. It’s crushing me… Look, I think Microsoft’s doing fine, but when they reported in late October, their guidance for Azure, which is their cloud infrastructure business, it came in light possibly because of supply constraints, which would be good. Plus, after previously saying that capital expenditures growth would be lower in 2026, management reversed course and told us that that would no longer be the case, which was just plain bad. At the same time, the stock was also held back by Microsoft’s heavy involvement with OpenAI. Now they own 27% of its for-profit business, which could be worth more than a hundred billion dollars, maybe more than that. On top of that, OpenAI is committed to spending 250 billion bucks with Microsoft’s Azure over the next several years. But lately, a lot of people are worried that OpenAI might not be able to pay its bills, which would be a real problem for Mr. Softee. Going forward, I still feel pretty good about Microsoft, especially if OpenAI can raise money at a valuation that’s close to the $800 billion number that’s been rumored.
Now, I have to tell you, as opposed to the end of last year, I am growing more and more confident each day that that will be the case, that OpenAI will not be a problem, it will not be the Achilles heel. Plus, I’d love it if their Azure business can outperform the recently lowered guidance. Look, if Azure can put up growth closer to 39, 40% than 35, then this stock could really roar. I am a believer in Microsoft, which is why we own it for the CNBC Investing Club. It is really a long-standing position.”
Microsoft Corporation (NASDAQ:MSFT) develops software, hardware, and cloud-based solutions. The company provides products like Windows, Azure, Office, LinkedIn, and Xbox.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is one of the Magnificent Seven stocks Jim Cramer recently reviewed. Cramer believes that the stock will again be a huge outperformer in 2026, as he commented:
“Let’s take them one by one because this feels like 2026 will be another year where individual stock picking is really going to start mattering. Remember, this is my big theme. Alphabet and NVIDIA, I think, are going to be two huge outperformers just like 2025… Nobody comes close
to NVIDIA in the number one spot at $4.55 trillion… The second-best performer of the Magnificent Seven last year and the only other member to outperform the S&P 500 was NVIDIA, which rallied 39% even as the stock mostly traded sideways for the final few months of the year. This was a big step down from NVIDIA’s 200% plus gain in 2023 and the over 100% gain it posted in 2024.
Despite being the largest company in the world, NVIDIA somehow still feels underappreciated to me. All four of the company’s earnings reports last year were excellent even if the magnitude of NVIDIA’s earnings beats have shrunk versus the last couple years, simply because Wall Street’s no longer underestimating this company like it used to. That’s where a lot of big performance boost came from. At the same time, NVIDIA remains firmly at the center of the AI ecosystem with the best chips that money can buy and a software moat that makes it very hard for other semiconductor players… to compete.
Today, NVIDIA stock struggled again. It finished down 88 cents after CEO Jensen Huang gave what I thought was a spectacular keynote address at last night’s CES… where he said that demand remains extraordinarily high and his next generation Vera Rubin chips are ahead of schedule… These things have entered full production with shipments scheduled to start in the second half of the year. Jensen also devoted lots of time last night to discussing physical AI, think robots, think self-driving cars, which is a market that’s rapidly growing. So yes, I still like NVIDIA very much entering 2026. Own it, don’t trade it, and that is the way we handle it, for, of course, for the Charitable Trust. Plus, as the calendar flips to the new year, the stock doesn’t look particularly expensive at all.
NVIDIA currently trades at less than 25 times this year’s earnings estimates. Wall Street anticipates nearly 40% earnings growth. That’s a cheap stock. From the perspective of a growth-oriented hedge fund manager, it’s insanely cheap. And if the past few years are any guide, NVIDIA will once again beat the estimates, maybe trouncing them, meaning the stock will look a lot cheaper in retrospect 12 months from now as is often the case with NVIDIA in the last decade. It’s confusing that the stock couldn’t rally on Jensen’s excellent keynote speech at CES yesterday. But like I said about Amazon last year, some stocks just don’t react the way they should, and you need to have enough confidence in your own work to say that the market is wrong.”
NVIDIA Corporation (NASDAQ:NVDA) develops accelerated computing and AI platforms, GPUs for gaming and professional use, cloud services, robotics and embedded systems, and automotive technologies.
1. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) is one of the Magnificent Seven stocks Jim Cramer recently reviewed. Cramer highlighted his regret after selling the stock for the Charitable Trust in 2025. The Mad Money host said:
“Let’s take them one by one because this feels like 2026 will be another year where individual stock picking is really going to start mattering. Remember, this is my big theme. Alphabet and NVIDIA, I think, are going to be two huge outperformers just like 2025… I gotta tell you, it does hurt me to see Alphabet as the best performing Mag Seven stock last year because, like an idiot, I sold it for the Charitable Trust. We threw in the towel last spring… But I spent the rest of the year regretting that move…
How about those AI worries? Turns out you didn’t need to be worried at all. You didn’t be afraid of generative AI when you got the best platform, and that’s what Google has with Gemini. Plus, there was never going to be any cannibalization here because Google just slapped their AI overview right on top of their search results page. Brilliant… Being the default generative AI platform for Google Search is a huge advantage. Who knows, maybe they’re going to pay Apple and do it for that, too.
Finally, in November, as the rest of the AI complex started to roll over, Alphabet surged higher because that’s when they released the latest version of Gemini, Gemini 3, which was almost instantly recognized as the best in the business… Look, that’s just search and AI. Alphabet’s got a lot more going for it. YouTube may be the most important and well, of course, watched force in media… Waymo’s the undisputed leader in robotaxis.
These guys even made some big advances in quantum computing, and don’t forget about Google Cloud, that’s their thriving cloud infrastructure business that competes with Amazon Web Services and Microsoft Azure, and many people think it does better than both. Of course, the one thing you can’t say about Alphabet anymore is that the stock is cheap. For a while last year, it was trading at a discount to the S&P 500, but it now sells for a nice premium. Still, the stock’s not that pricey at 28 times this year’s earnings estimates when you consider the growth rate. Given everything Alphabet has going for it, I think that’s reasonable, which is why we bought the stock for the Charitable Trust. We bought it back again near the end of the year. I intend to make it a big position. I bet it keeps climbing in 2026. I was tempted to buy some even today for the trust when this stock was down almost five points. It closed down $2.22.”
Alphabet Inc. (NASDAQ:GOOGL) provides tech-related products and services, including search, advertising, cloud computing, AI tools, and digital content platforms like YouTube and Google Play.
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