Magnificent 7 Tech Stocks Post Mixed Performance in November 2025 December 16, 2025

The Magnificent 7 technology stocks experienced a challenging November 2025, with the group declining 1.9% as investors rotated out of mega-cap technology names into cyclical and financial sectors. Despite underperforming the S&P 500’s 1.2% gain, the group still outperformed the NASDAQ, which fell 2.0% during the month.

Market Rotation Drives Mixed Results

The month was characterised by significant profit-taking and renewed valuation concerns, triggering a pronounced sector rotation away from large-cap technology stocks. This shift reflected investors’ growing appetite for cyclical and financial names as market dynamics evolved.

Individual performance within the Magnificent 7 varied dramatically. Google (GOOGL) emerged as the standout performer, surging 14% following the successful launch of its Gemini 3 AI model. Apple (AAPL) also posted solid gains of 3%, benefiting from strong iPhone demand and effective cost-cutting measures that supported margins.

However, these gains were offset by notable declines in other group members. NVIDIA (NVDA) fell 13% as investors rotated out of AI-focused stocks amid growing valuation concerns in the sector. Tesla (TSLA) declined 6% as intensifying price competition in the electric vehicle market led to margin erosion pressures.

Investment Outlook Remains Positive

Despite November’s mixed performance, Phillip Securities Research maintains an OVERWEIGHT recommendation on the Magnificent 7 stocks. The team believes that earnings growth for these companies, excluding Tesla, will continue to outpace both the S&P 500 and the NASDAQ 100.

Several key tailwinds support this optimistic outlook. The adoption and demand for artificial intelligence technologies continues to expand globally, with sovereign nations including the European Union and United Arab Emirates increasing their AI investments. Additionally, the US government’s AI Action Plan, unveiled in July 2025, is expected to provide further support for the sector.

The research also points to anticipated monetary policy changes, with more rate cuts expected in 2026, which could provide a favourable environment for technology stocks to resume their growth trajectory.

Frequently Asked Questions

Q: How did the Magnificent 7 perform compared to major indices in November 2025?

A: The Magnificent 7 declined 1.9%, underperforming the S&P 500’s 1.2% gain but outperforming the NASDAQ’s 2.0% decline.

Q: What caused the sector rotation away from mega-cap technology stocks?

A: The rotation was triggered by profit-taking and renewed valuation concerns, leading investors to move into cyclical and financial sectors.

Q: Which Magnificent 7 stocks performed best in November?

A: Google (GOOGL) was the top performer with a 14% gain due to its successful Gemini 3 AI model launch, followed by Apple (AAPL) with a 3% increase.

Q: Why did NVIDIA decline during the month?

A: NVIDIA fell 13% due to investor rotation out of AI-focused stocks and growing valuation concerns in the artificial intelligence sector.

Q: What is Phillip Securities Research’s recommendation on the Magnificent 7?

A: The firm maintains an OVERWEIGHT recommendation on the Magnificent 7 stocks, believing their earnings growth will continue to outperform major indices.

Q: What factors support the positive outlook for these stocks?

A: Key tailwinds include greater AI adoption by sovereign nations like the EU and UAE, the US government’s AI Action Plan from July 2025, and expected rate cuts in 2026.

Q: Which stock is excluded from the positive earnings growth outlook?

A: Tesla (TSLA) is excluded from the expectation that Magnificent 7 earnings will outperform the S&P 500 and NASDAQ 100.

Q: What challenges did Tesla face in November?

A: Tesla declined 6% due to price competition in the electric vehicle market that led to margin erosion pressures.

This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.

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