Big Tech Stumbles in 2025 as Momentum Stocks Take the Lead
The once-unshakable Big Tech giants—Apple (AAPL), Tesla (TSLA), and Nvidia (NVDA)—are facing a rough start in 2025, diverging from their previous dominance. Despite wrapping up 2024 with their best annual performance in nearly two decades, these tech behemoths have struggled to maintain their momentum.
Yet, Wall Street’s momentum machine hasn’t stopped, even without Big Tech at the helm. The Roundhill Magnificent Seven ETF (MAGS), which equally weights the famed “Magnificent Seven” tech stocks, has barely budged, gaining only 0.4% since the start of the year.
Momentum Stocks Surge While Big Tech Stalls
📉 Big Tech’s Slump:
- Apple (AAPL) +2.18% — A modest gain, but far from its past explosive growth.
- Tesla (TSLA) -6.34% — Facing headwinds from increased competition and EV market challenges.
- Nvidia (NVDA) -0.58% — Cooling off after a red-hot 2024 driven by AI hype.
📈 Momentum Stocks Take Over:
While Big Tech falters, other sectors are picking up the slack, driving new market leaders in 2025. AI-driven stocks, industrials, and select energy companies have started the year strong, keeping the broader market afloat.
What’s Driving the Shift?
🔍 Big Tech Fatigue: Investors may be rotating away from overvalued tech stocks after their meteoric rise in 2024.
💰 Broader Market Rally: Strong earnings, interest rate optimism, and AI expansion have created new winners beyond Big Tech.
📊 Momentum Beyond Tech: Sectors like cybersecurity, biotech, and energy are emerging as fresh market leaders.
Will Big Tech Rebound or Is a New Era Beginning?
As 2025 unfolds, investors must decide whether Big Tech’s dominance is fading or if this is just a temporary pullback before another rally. While the Magnificent Seven ETF struggles, the broader momentum trade continues to thrive, reshaping Wall Street’s leadership.
