A recent rise in the collective valuation of a group of leading technology companies, known as the Magnificent Seven: Apple, Microsoft (NASDAQ:), Alphabet (NASDAQ:), amazon (NASDAQ:), Nvidia (NASDAQ:), Meta and Tesla has exceeded 18 trillion dollars, which is a first in the history of the market. Nigel Green, CEO of deVere Group, one of the world's largest financial advisory organizations, has expressed his firm belief that these tech giants will maintain their market dominance until 2025.
Green highlighted the unprecedented market value of these companies, which now exceeds the annual GDP of every country except the United States and China. It attributed its success to a consistent track record of exceeding ambitious market projections, thereby establishing itself as major drivers of innovation and global wealth creation.
Despite a moderation in earnings growth, Big tech is expected to continue outperforming Big tech. Its leadership in high-growth sectors such as artificial intelligence (ai), cloud computing, electric vehicles (EV) and digital advertising is a key factor in its sustained success. Green emphasized that the companies' expansion into transformative technologies and their proven ability to deliver under pressure will keep their leadership position secure in the coming year.
Green pointed to the companies' decade-long pattern of consistent outperformance, which he believes is a direct result of their focus on innovation, diversification and executing at scale. He predicted that 2025 would be another important year for these companies, driven by their investments in innovative technologies and their dominance in sectors crucial to the future economy.
artificial intelligence stands out as a central pillar of this bullish outlook. Nvidia remains at the forefront of ai hardware, while Microsoft continues to integrate ai-powered tools into its suite of enterprise services. amazon is using ai to improve its AWS cloud services and Meta Platforms (NASDAQ is optimizing its advertising platforms with ai technology. Tesla (NASDAQ is advancing ai in electric vehicle technology and autonomous driving. Alphabet and Apple (NASDAQ ) are expanding their ai-based hardware and healthcare technology ecosystems.
Despite the optimistic forecast, Green acknowledged potential risks, including high valuation multiples and increased regulatory scrutiny. The Magnificent Seven trades at around 40 times forward earnings, a valuation that leaves little room for error. Governments around the world are also seeking to curb its influence, particularly in ai. Additionally, large investments in next-generation technologies could put pressure on margins in the near term.
Green concluded by downplaying concerns about valuations and regulatory challenges, arguing that the opportunities presented by Big tech far outweigh these risks. He sees these companies as disrupting entire industries and reshaping everyday life, making them an essential part of any growth-focused investment portfolio.
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