Nigel Green
Big Tech set to outperform Wall Street again in 2025
DUBAI, 10 hours, 48 minutes ago
The Magnificent Seven—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla—have repeatedly shattered Wall Street forecasts, deVere Group predicts they’ll continue to dominate throughout 2025.
CEO of deVere Group, Nigel Green, is weighing in after a group of megacap tech companies has seen its collective valuation surpass $18 trillion for the first time ever, according to Dow Jones Market Data.
He says: “The combined market value of the Magnificent Seven now exceeds the annual GDP of every country globally, except for the US and China.
Primary drivers
“Their track record of surpassing even the most ambitious projections is unrivalled, cementing their place as the primary drivers of global innovation and wealth creation.”
Even as earnings growth moderates, Big Tech is still set to deliver results far above the rest of the S&P 500. This is thanks to their dominance in high-growth sectors such as artificial intelligence (AI), cloud computing, EVs, and digital advertising.
These firms’ ability to expand into transformative technologies, coupled with their history of delivering under pressure, ensures their leadership will remain unchallenged next year.
“Big Tech’s consistent outperformance over the past decade is no accident,” continues Green. “Their ability to beat expectations time and again is a direct result of their relentless focus on innovation, diversification, and executing at scale.
Banner year
“We believe 2025 will be another banner year for these companies, driven by their investment in groundbreaking tech and their dominance in sectors that matter most for the future economy.”
At the heart of this bullish outlook is artificial intelligence, a key growth engine. Nvidia, for instance, remains the leader in AI hardware, providing the essential tools for AI model development worldwide.
Microsoft continues to dominate the enterprise space with its AI-driven tools integrated into Office, Azure, and Dynamics. Amazon, through its AWS cloud business, is leveraging AI to enhance services for businesses of all sizes.
Meta Platforms is optimising its advertising platforms with AI and scaling innovative products like its generative AI offerings for consumers.
Tesla continues to push the envelope with AI-driven advancements in EV technology and autonomous driving, while Alphabet and Apple are expanding their reach into health tech and hardware ecosystems that are increasingly infused with AI capabilities.
Seize and scale
These companies’ ability to seize and scale such transformative opportunities has allowed them to weather challenging market conditions.
While the outlook is overwhelmingly positive, it’s important to acknowledge the potential risks.
Valuation remains a concern, with the Magnificent Seven collectively trading at around 40 times forward earnings—levels that leave little room for error.
Regulatory scrutiny is also increasing as governments globally seek to limit their influence, especially with their expanding investment in AI capabilities. Additionally, heavy spending on next-gen technologies may put short-term margins under pressure.
“While some investors may point to valuations or regulatory headwinds, these concerns are far outweighed by the opportunities Big Tech presents,” Green continues.
“They are not only disrupting entire industries but also reshaping how we live and work. For forward-thinking investors, these firms remain a cornerstone of any growth-focused portfolio.”--TradeArabia News Service
