The Magnificent Seven: Tech Giants on an Epic Scale

Analysts at Deutsche Bank have taken a closer look at the astounding size of the so-called Magnificent Seven – a group of U.S. tech giants that, when combined, rival the value of multiple major stock markets.

At $13.1 trillion, the collective value of Microsoft, Apple, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla surpasses that of Japan, France, and the U.K. combined.

Although their profits are substantial, they fall just short of the colossal figures generated by Japanese companies and are about half of what Chinese companies bring in.

However, the potential for further profit is immense. Deutsche Bank highlights that nearly 40% of the global population still lacks internet access. This untapped market represents a significant opportunity for the tech giants.

To illustrate historical trends in technology and infrastructure adoption, Deutsche Bank presents an insightful chart. They note that some technologies have experienced faster leveling off than others, often leading to investment booms and busts.

While the network effects and the nascent stage of artificial intelligence suggest continued growth for the Magnificent Seven, there are potential risks such as antitrust regulations, tighter governmental control of communication, and increasing acts of sabotage.

Also see: This grouping of stocks has managed to keep up with the Magnificent Seven, but with considerably less risk.