The Great Shake-Up: Are Tesla & Apple Losing Their Place in the Magnificent Seven Stocks 2025?

The stock market is at all-time highs, but there’s a deeper story brewing beneath the surface. A growing number of fund managers are questioning whether the iconic Magnificent Seven stocks, the tech giants that carried the market in recent years are due for a reshuffle.

The big question: Should Tesla and Apple still be in the Magnificent Seven for 2025? Or is it time to make room for the likes of Oracle and Broadcom?

We covered this in more detail in our latest Wealth Pulse session. Watch the full breakdown here:

Let’s unpack the key debates and what it means for investors in 2025.

1. Tesla’s Valuation Fatigue & Rising Competition

Tesla has been a darling of innovation and growth. But in 2025, it’s caught in a storm of price wars, especially with China’s BYD and other domestic EV makers undercutting on cost. Even in Singapore, BYD’s presence is growing rapidly.

Beyond competition, Tesla’s stock is being hammered by non-business distractions. Elon Musk’s tease about forming a new political party sent Tesla’s share price tumbling 6.2% on mere speculation! Investors worry that Musk’s political ambitions could dilute his focus on Tesla’s core mission.

While Tesla’s long-term projects like Robotaxi and Optimus (their humanoid robot) sound promising, as one fund manager put it, “We don’t buy hopes and dreams.” Institutional investors need tangible growth today, not just vision.

Yet for individual investors, this also spells opportunity. Tesla’s price-to-sales ratio has normalized to historical averages (~9x), making it less frothy than in 2022’s peak. If you believe in the vision, and can stomach the volatility, this could be an accumulation window.

Of course, this is not a recommendation to buy, sell or hold just based on what we shared here.

2. Apple’s Innovation Slowdown

Apple isn’t faring much better in the “stickiness” department. The latest iPhone releases are met with a collective shrug. Consumers aren’t upgrading as frequently. Why pay premium for marginal improvements?

Even Apple’s much-touted Apple Intelligence (AI) launch didn’t impress. It’s less of a technological leap and more of a branding exercise. Their AI tools don’t yet stand out compared to rivals like Microsoft or Meta in the AI race.

Moreover, Apple’s heavy manufacturing reliance on China introduces geopolitical risk, especially with the US imposing tariffs. Any supply chain disruption could squeeze margins and elevate iPhone prices further.

All this leads fund managers to one conclusion: Apple might be losing its “must-own” status in tech-heavy portfolios.

3. Oracle & Broadcom: The Unexpected Newcomers?

If Tesla and Apple exit the Magnificent Seven, who takes their place?

According to fund manager Michael Brush, the replacements are clear:

  • Oracle:
    Once seen as a legacy software giant, Oracle has reinvented itself through its cloud services. Its Oracle Cloud Infrastructure (OCI) is gaining traction, especially in sectors like finance and healthcare that demand data security and compliance.

Oracle’s cloud revenue is growing impressively, and its customer base is sticky. Many enterprises are reluctant to switch databases due to cost and complexity.

  • Broadcom:
    Best known for semiconductors, Broadcom is quietly becoming a vital AI infrastructure player. Their AI chip revenue jumped 46%, positioning them as a critical supplier in the AI boom, reducing over-reliance on Nvidia.

Both companies may not have the cultural cachet of Tesla or Apple, but they’re delivering growth where it counts.

 

GoodWhale’s Take

At GoodWhale, we think the Magnificent Seven stocks 2025 debate is less about strict membership and more about adapting to change.

  • If you’re an index investor: You’re naturally exposed to these shifts as indices rebalance.

  • If you’re stock-picking: Pay attention to sectors quietly gaining strength: Cloud computing (Oracle), AI infrastructure (Broadcom), and semiconductors.

That said, don’t write off Tesla or Apple entirely. Both have their moats, immense cash reserves, and a global brand. But the days of automatic growth may be behind them. Future gains will come from execution, not just reputation.

We’ll dive deeper into Oracle’s transformation in our next Wealth Pulse, especially how their cloud pivot is powering growth. Don’t miss it.

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