The Tech Stock Rally Isn’t Just Hype—Here’s What’s Really Driving It

Big Tech just lit up the markets again. Amazon, Tesla, Meta, Nvidia—boom. Some of the heaviest hitters in the game gained over 5% in a single day.

But this isn’t about Q1 earnings or some killer new product drop. It’s about tariffs—and more specifically, China.

So, let’s break down what’s going on behind the rally, why it matters, and what investors like you should actually do about it.

Why the Magnificent Seven Just Rallied (Again)

In case you missed it, Trump held a press conference this week and said his previously announced 145% “reciprocal” tariffs on Chinese imports are probably too high—and could be coming down substantially.

Wall Street didn’t need more than that.

The Magnificent Seven—Apple, Amazon, Microsoft, Meta, Nvidia, Google, and Tesla—exploded:

• Tesla: +7%

• Amazon: +6.3%

• Meta: +5.2%

• Nvidia: +5.1%

• Apple: +3.5%

• Google and Microsoft: +3%

That’s not a random coincidence. These companies have one thing in common: deep exposure to China.

The China Connection You Can’t Ignore

If you’re investing in Big Tech, you’re investing in companies that are intertwined with China’s supply chains, consumer market, and even ad revenue.

Here’s how it breaks down:

• Apple: Roughly 90% of iPhones are assembled in China. In 2024, China made up 17% of Apple’s total revenue.

• Amazon: Around 30% of the goods sold on its marketplace come from China. Chinese advertisers made up 14% of Amazon’s ad revenue last year.

• Meta: 11% of its ad revenue came from Chinese businesses in 2024.

• Tesla: A huge portion of its batteries and parts come from China. Oh, and it’s competing head-to-head with BYD, China’s top EV maker.

• Nvidia: According to DA Davidson, China-related customers might account for up to 40% of their revenue. Even if it’s a rough estimate, that’s a serious chunk.

When tensions rise, these companies bleed. When tariffs ease? They fly.

What This Means for You as a Retail Investor

Here’s the problem: most retail investors don’t have a system for navigating this kind of volatility. They either:

• Panic when headlines turn ugly, or

• FOMO into green candles when stocks bounce back

Neither of those are actual strategies. That’s reacting, not investing.

And that’s exactly why we built the Magnificent Seven Strategy on Surmount.

A Smarter Way to Ride Tech Volatility

Let’s be real: timing the market based on geopolitical headlines is a losing game. Even full-time hedge fund managers don’t get it right most of the time.

The Mag 7 Strategy on Surmount takes a different approach:

• Automated exposure to the top seven U.S. tech names

• Rules-based entries and exits, not vibes

• Risk management baked in, so one bad quarter doesn’t tank your portfolio

• Backtested logic, not opinion pieces

You still get access to the upside of Big Tech—but without leaving yourself wide open when politics or policy changes hit the headlines.

It’s like driving with GPS instead of winging it in a new city.

Why This Matters Long-Term

Even if tariffs ease now, this isn’t the last you’ll hear about U.S.-China tensions. If anything, these kinds of swings will become more common, not less.

Here’s the uncomfortable truth: geopolitical risk is now a permanent part of investing in tech.

That doesn’t mean you should avoid the space. It just means you need a better game plan—one that adapts, hedges, and executes without needing your constant attention.

Because let’s be honest: you’ve got better things to do than stress-scroll Bloomberg at 9:30am.

Bottom Line

Tech isn’t going anywhere. But neither is volatility.

If you're serious about investing in this space, you need more than headlines. You need a strategy that handles them for you.

The Magnificent Seven Strategy on Surmount gives you smart, automated exposure to the biggest names in tech—without the guesswork.

Ready to level up your investing game?
Start using our Mag 7 Strategy today, right from your existing brokerage. No minimums, no fluff—just better investing.

The information presented is for educational purposes only and not an offer or solicitation for any specific investments. Investments involve risk and are not guaranteed. Consult with a financial adviser before making any investment decisions. Past performance does not guarantee future results.