Introduction
The Seven Magnificent tech giants, with their massive capitalization, have led Wall Street’s rebound and AI investments have fueled company acquisitions. NVIDIA, Microsoft, Apple, Alphabet (Google’s parent company), Amazon, Meta Platforms (formerly Facebook), and Tesla collectively hold over $19 trillion in market value, representing nearly a third of the S&P 500’s total market capitalization.
Acquisition Trends
Since their initial public offerings (IPOs), these tech titans have collectively acquired 846 companies, with most being technology-oriented. Here’s a breakdown of their acquisitions:
Alphabet (Google)
Alphabet, Google’s parent company, has acquired 270 companies. Notable acquisitions include YouTube (entertainment), Waze (navigation), Motorola (telecommunications), Nest Labs (smart home devices), DoubleClick (advertising technology), Looker (business intelligence), and Wiz (cybersecurity).
Microsoft
As a software developer, Microsoft has acquired 250 firms. Key acquisitions are LinkedIn (professional networking), GitHub (code hosting and collaboration), Skype (communication software), Mojang (Minecraft creator), Activision Blizzard (video game developer), and ZeniMax Media (game developer). Microsoft has also invested in AI-focused companies like OpenAI, the creator of ChatGPT.
Amazon
The leading e-commerce platform, Amazon, has made 105 acquisitions. These include Whole Foods Market (grocery chain), Twitch Interactive (live streaming platform), Zoox (autonomous vehicle technology), and Audible (audiobook service).
Apple
The iPhone manufacturer, Apple, has acquired 100 companies. Notable acquisitions are Beats Electronics (audio and music) and Shazam (music recognition). Apple has also made significant AI-related acquisitions like Siri, Cue, and PrimeSense.
Meta Platforms (Facebook)
Meta, formerly Facebook, has made 95 acquisitions. Key purchases are Instagram (photo-sharing social network), WhatsApp (messaging app), Oculus VR (now Reality Labs, virtual reality headsets), and Scale AI (artificial intelligence for autonomous vehicles).
NVIDIA
NVIDIA, a graphics processing unit (GPU) manufacturer, has invested in 20 AI-focused companies, including OpenAI, Cohere, Mistral, Perplexity, and CoreWeave.
Tesla
The electric vehicle manufacturer, Tesla, has acquired six companies. Notable acquisitions are SolarCity (solar energy), Maxwell Technologies (energy storage), SpaceX (space exploration and technology), X (social network), and Neuralink (neurotechnology).
Expert Opinions
Monex Casa de Bolsa experts believe the tech sector has promising prospects for the rest of the year, driven by artificial intelligence. However, they acknowledge potential risks from regulatory measures in the semiconductor sector that could impact market share.
Market Performance
The Seven Magnificent tech giants collectively hold over $2.1 trillion in market capitalization by 2025. The Roundhill Magnificent Seven ETF has gained 11.14% to 60.48 units this year, aiming for exposure to the seven largest tech companies.
Stock Performance
- NVIDIA: 34.37%
- Meta Platforms: 34.11%
- Microsoft: 23.41%
- Alphabet: 7.71%
- Amazon: 5.31%
- Apple: -7.52%
- Tesla: -18.52%
