US Stock market most popular stocks: Investors are banking on these stocks. Are you?

Owning big U.S. tech stocks is once again the most popular trade, according to BofA's monthly fund manager survey, as upbeat earnings and improved sentiment towards the global economy send investors back into stocks. 45 per cent of the 169 participants in August's survey, who have $413 billion in assets under management, said they thought the most crowded trade was "long Magnificent 7", a group of large U.S. tech stocks, including Nvidia and Microsoft. "Magnificent 7" stocks — Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla — have continued their impressive run, driving a significant portion of 2025’s equity market gains. These tech-heavy giants, now responsible for over 35 per cent of the S&P 500's total market cap, have collectively surged over 28 per cent year-to-date, outpacing broader indices.

Strong earnings have helped big tech stocks to bounce back sharply since their tariff induced selloff in April. They were last seen as the most crowded trade in March, the survey, which was released on Monday, showed. Broad investor sentiment improved in August, with just 5 per cent of asset managers positioning for a hard landing, characterised by a sharp slowdown in economic growth.

A net 14 per cent of those surveyed were overweight global equities, the highest since February, though still down sharply from net 49 per cent overweight in December.


Nvidia remains the standout, buoyed by relentless demand for AI chips and enterprise solutions. Apple and Microsoft have delivered steady gains, supported by services growth and cloud momentum, respectively. Amazon and Alphabet have rebounded strongly amid cost restructuring and advertising recovery, while Meta's push into AI-driven personalization has resonated with investors. Tesla, despite regulatory hurdles, has recovered from earlier losses thanks to expanding energy storage revenues and autonomous driving progress.

Analysts warn that heavy concentration in these names increases downside risk, but investors remain undeterred. “It’s hard to argue with the numbers,” said Dana Liu, senior strategist at Brightview Capital. “As long as AI and digital transformation dominate the narrative, the Magnificent 7 will likely remain in control.”

With earnings season largely beating expectations, the Magnificent 7’s long positions remain a favored bet — though some strategists urge diversification as valuations stretch further into historically rich territory.

FAQs

Q1. Which are Magnificent 7 stocks?
A1. Magnificent 7 stocks are Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla.

Q2. How are Nvidia stocks are performing?
A2. Nvidia remains the standout, buoyed by relentless demand for AI chips and enterprise solutions. Apple and Microsoft have delivered steady gains, supported by services growth and cloud momentum, respectively.