Mag 7 Stocks Set to Continue Growing Until 2025, Says deVere Group CEO
Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Nvidia, Meta, and Tesla make up a group of leading technology companies known as the Magnificent Seven, whose total valuation has recently surpassed $18 trillion, marking a historical milestone in market history. Nigel Green, CEO of deVere Group, one of the world's largest financial advisory firms, expressed a strong belief that these tech giants will maintain their market dominance through 2025.
Green pointed out that the market capitalization of these companies now exceeds the annual GDP of every country outside of the U.S. and China. He attributed their success to a consistent track record of consistently exceeding ambitious market projections, positioning themselves as the main driving forces behind global innovation and wealth creation.
Despite a slowdown in earnings growth, it is still expected that Big Tech companies will continue to outperform the broader S&P 500 index. Their leading positions in high-growth sectors such as artificial intelligence (AI), cloud computing, electric vehicles (EV), and digital advertising are seen as key factors of their sustainable success. Green emphasized that the companies' expansions into transformative technologies and their proven capability to deliver under pressure will secure their leading positions in the coming year.
Pointing to the companies' decade-long consistent performance superiority model, Green stated that he believes this is a direct result of their innovation, diversification, and scalable application-focused approaches. He forecasted that 2025 will be another significant year for these firms, thanks to their investments in groundbreaking technologies and their dominance in sectors critical to the future economy.
AI emerges as a central pillar of this optimistic outlook. Nvidia continues to maintain its leading position in AI hardware, while Microsoft integrates AI-powered tools into its enterprise services package. Amazon utilizes AI to enhance its AWS cloud services, and Meta Platforms (NASDAQ:META) optimizes its advertising platforms with AI technology. Tesla advances AI in EV technology and autonomous driving, while Alphabet and Apple expand AI-driven health technologies and hardware ecosystems.
Despite the optimistic outlook, Green acknowledged potential risks, including high valuation multiples and increasing regulatory scrutiny. The Magnificent Seven currently trades at around 40 times forward earnings, leaving little room for error in valuation. Governments worldwide are also trying to limit their influence, particularly regarding AI. Additionally, hefty investments in next-generation technologies could pressure short-term margins.
Green downplayed concerns regarding valuations and regulatory challenges, asserting that the opportunities offered by Big Tech far outweigh these risks. He views these companies as transformative actors reshaping all industries and daily lives, and therefore considers them an indispensable part of any growth-oriented investment portfolio.