---
title: "Mag 7: Concentration Or Diversification?"
description: "The article discusses the performance of the Mag-7 index, particularly in light of the DeepSeek announcement. Despite underperforming the S&P 500 initially, the index is close to recovery. Nvidia expe"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/250835257.md"
published_at: "2025-07-30T16:52:30.000Z"
---

# Mag 7: Concentration Or Diversification?

> The article discusses the performance of the Mag-7 index, particularly in light of the DeepSeek announcement. Despite underperforming the S&P 500 initially, the index is close to recovery. Nvidia experienced a significant drop of 17% on DeepSeek Day but has since rebounded by 87%. Tesla has lagged due to political tensions, while Microsoft and Meta have outperformed the S&P 500 ahead of their earnings reports.

As Microsoft and Meta prepare to report earnings tonight, Deutsche Bank's Jim reid notes that this week marks six months since the broader market first digested the emergence of DeepSeek. Since that announcement, the equal-weighted Mag-7 index has underperformed the S&P 500, but it's now within a whisker of catching up.

To contextualize: on Monday, January 27 - the day DeepSeek hit the headlines - **Nvidia dropped -17%, recording the largest single-day market cap loss in history at $593 billion.** Markets stabilized briefly before declining further into and just after “Liberation Day.” From DeepSeek Day to the post-Liberation Day trough, Nvidia fell roughly -34%. However, since then, **it has staged an extraordinary rally of +87%, placing it +24% above the level it held immediately prior to the DeepSeek-triggered sell-off.**

Looking across the broader Mag-7 complex since, **Tesla has been the clear laggard,** weighed down by ongoing political tensions between Trump and Musk and broader investor concerns over earnings sustainability. By contrast, Microsoft and Meta — both reporting tonight — have outperformed the S&P 500 since DeepSeek Day, alongside Nvidia.

### Related Stocks

- [META.US - Meta Platforms](https://longbridge.com/en/quote/META.US.md)
- [MSFT.US - Microsoft](https://longbridge.com/en/quote/MSFT.US.md)
- [NVDA.US - NVIDIA](https://longbridge.com/en/quote/NVDA.US.md)

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---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.