How well do you understand the true power of the world’s most influential companies?
The Magnificent Seven (Microsoft, Apple, NVIDIA, Alphabet, Amazon, Meta, and Tesla) is more than just a group of industry leaders. They are tech titans with significant influence on the world—from consumer decisions to global economic policies.
Dive into the surprising truths about the MAG7. From staggering revenue streams to controversial lawsuits, prepare to uncover the unexpected.
What’s Magnificent About the Magnificent Seven?
The term “MAG7” was first used in 2023 to describe Microsoft, Apple, Google (Alphabet), Amazon, NVIDIA, Meta, and Tesla as they dominate the global market. The name was used in a research note by the Bank of America’s managing director and chief investment strategist, Michael Hartnett.
The seven tech giants are deemed ‘magnificent’ to reflect the exceptional returns these companies have generated for investors, particularly following the pandemic-driven market crash in 2020.
Here’s a comprehensive snapshot of the fiscal health and market standing of the seven companies over time to prove just how magnificent they are:
Market Cap
Revenue
Operating Expenses
Cash on Hand
Employee Population
Average Stock Price
Earnings Per Share
MAG7 companies are technology leaders. They are also the frontrunners in shaping the future of industries worldwide. While their names are widely known, there are surprising details about them that you don’t know.
Find out more about the superior tech giants in the following sections.
1. The combined market cap of MAG7 is equal to 11.41% of the world’s GDP.
In 2023, the Magnificent Seven boasted a combined market cap of nearly $12.03 trillion. To put that into perspective, the staggering figure represents 11.41% of the world’s total GDP, which stands at $105.44 trillion.
MAG7’s market cap is so massive that it surpassed the GDPs of economic powerhouses like Germany, Japan, and India. The astronomical market cap emphasizes the unparalleled influence that the seven tech giants wield over the global economy.
| 💡Did You Know? Magnificent 7’s $12.03 trillion market cap overshadows not just major countries but also the GDP of entire regions. The combined market value of the seven tech giants is nearly six times the GDP of Sub-Saharan Africa, which stands at approximately $2.06 trillion. It also exceeds the GDPs of the entire Arab World ($3.49 trillion) and the Middle East & North Africa region ($4.29 trillion). |
2. MAG7’s market cap is 10.64x more than the GDP of “poor countries.”
The overall market value of Magnificent 7 is 10.64 times greater than the entire GDP of the world’s Heavily Indebted Poor Countries (HIPC). The HIPC is a group of around 40 developing nations struggling with extreme poverty and debt.
Countries that are part of the HIPC include Sudan, Cameroon, Bolivia, and more. Collectively, these countries generate a GDP of just $1.13 trillion.
The significant difference between MAG7’s market cap and HIPC’s GDP highlights the financial disparity between the tech giants and some of the world’s most vulnerable economies.
3. Microsoft redefined gaming dominance with its $68.7 billion Activision acquisition.
Acquisitions are critical to expand a business’ presence in the market, diversify its offerings, and stay ahead of its competitors. By acquiring other companies, businesses can tap into new technologies, talent, and customer bases.
Microsoft’s acquisition of Activision Blizzard in 2022-2023 is a prime example. This $68.7 billion deal is double Iceland’s GDP of $31.02 billion.
The acquisition made it possible for Microsoft to become the world’s second-largest console maker, surpassing Nintendo. It also put Microsoft on the top as today’s largest gaming company by revenue, outstripping Tencent and Sony.
4. Amazon and Apple rake in a staggering $1 billion in revenue every single day.
In 2023, the average revenue for the MAG7 companies reached $248 billion—emphasizing their unparalleled ability to generate massive income streams.
Amazon notably broke the $1 billion daily revenue mark in 2020. Apple followed suit and joined the billion-dollar-a-day club in 2021.
These milestones set a new benchmark for business scale and efficiency. For MAG7 to achieve high daily revenue figures only shows how pivotal their role is in driving economic growth and innovation worldwide.
5. The average revenue of MAG7 soared by nearly 25% during the pandemic.
Interestingly, amid the COVID-19 pandemic, the MAG7 companies experienced a remarkable rise in revenue. The average revenue of the seven companies increased by 24.87%, from $182.61 billion in 2019 to $228.02 billion by 2022.
Tesla led the revenue surge during the pandemic with an astonishing 231.3% growth, followed by NVIDIA with a 146.79% increase. The remarkable growth shown by the seven companies depicts their resilience in times of crisis as well as the critical role of technology in navigating global challenges.
6. MAG7’s 2022 R&D spending is greater than the United States budget for education, transportation, and other sectors.
In 2022, the MAG7 companies collectively invested $194.643 billion in research and development (R&D). This figure surpassed the United States’ 2024 federal budget allocations for education, transportation, and agriculture combined.
Putting it into perspective, the R&D expenditure of the seven tech giants is 7.2 times larger than NASA’s entire budget worth $27.2 billion. It is also equivalent to 23.11% of what the United States allocates to the Department of Defense.
| 💡Did You Know? Amazon’s R&D spending is particularly notable. Its $73.21 billion R&D spending is more than three times that of Huawei ($23.2 billion) and four times that of both Samsung and Intel—with $18.17 billion and $17.53 billion, respectively. The high level of investment emphasizes the commitment of MAG7 companies to stay ahead of the increasingly competitive global market. |
7. Magnificent 7 spends $1.35 trillion in operations—outspending Intel, Salesforce, and Oracle.
MAG7’s operating expenses worth $1.35 trillion are another factor that sets the group apart from other tech companies. These expenditures are critical for sustaining operations and securing positions in highly competitive and fast-evolving markets.
Amazon’s colossal $537.9 billion expenditure on operations alone surpasses the expenses of Oracle, Intel, and Salesforce. The enormous figures across the MAG7—like Apple’s $269 billion and Alphabet’s $223 billion—indicate the extensive reach and complexity of their businesses.
8. Apple’s CEO earns 672 times more than the median employee.
Compensation reveals stark contrasts in corporate hierarchy and value distribution. For instance, Apple’s CEO earns 672 times more than the median employee. Tim Cook earned over $63 million in 2023, while an Apple employee only gets around $94,118. This highlights a significant pay disparity within the company.
In contrast, companies like Alphabet and Amazon show more moderate ratios of 28:1 and 37:1, respectively. The difference between the two companies’ pay and Apple’s reflects the latter’s more balanced approach to compensation.
The figures above offer a preview of how each company values its leadership and its broader workforce. They can be indicative of its overall corporate culture and strategic priorities.
| 🎉 Fun Fact Elon Musk receives a $0 salary from Tesla due to his unique 10-year compensation package tied entirely to the company’s performance. Instead of a fixed salary, his earnings are based on reaching milestones in market cap, revenue, and profitability. If all targets are met, Musk could receive stock options worth billions. This pay package depicts how his financial success directly relates to Tesla’s long-term growth. |
9. During the pandemic, Tesla’s stock price skyrocketed by 1341.89%.
Tesla’s meteoric rise in stock price during the COVID-19 pandemic is extraordinary, leaping from $18.24 in 2019 to $263 in 2022. That’s an astonishing 1341.89% increase.
While companies like NVIDIA and Apple saw significant gains, Tesla’s massive surge is a clear signal of investor confidence in the electric vehicle revolution and Elon Musk’s ambitious vision.
10. Amazon has over 1.5 million employees.
Amazon’s workforce is mind-blowing—with 1.525 million people on the payroll. That’s more than the entire population of small countries like Cyprus and Mauritius.
The massive employee population is a reflection of Amazon’s scale and reach in the world of e-commerce and logistics. While companies like NVIDIA and Meta thrive with specialized teams, Amazon’s strength lies in its army of workers who keep the gears of global retail turning.
11. Tesla faced 1,000 lawsuits and settled 75%.
Tesla has faced over 1,000 lawsuits since its founding—grappling with allegations on labor practices and product safety concerns along with accusations of securities fraud.
Notably, Tesla has faced legal challenges over its Autopilot system, with over 700 lawsuits on product liability claims. Despite these ongoing legal battles, investor confidence in Tesla remains remarkably resilient.
According to a 2023 analysis by Bloomberg, Tesla has managed to settle or dismiss nearly 75% of these cases, minimizing their financial impact.
12. Alphabet shelled out €4.34 billion to the EU over an antitrust case.
Alphabet constantly faced antitrust investigations across several countries. In 2018, the European Union imposed a record-breaking €4.34 billion fine on the company.
The organization alleged that Google’s practices on the Android operating system stifled competition and restricted consumer choice. This fine was equivalent to roughly 1.76% of Alphabet’s annual revenue in 2023, clearly showing the gravity of the EU’s accusations.
In the United States, the Department of Justice and multiple states also launched investigations into Alphabet. For instance, in May 2023, the company settled a $39.9 million lawsuit with Washington State over claims that it misled users about how it tracked their location data.
13. Microsoft’s $11 billion investments in OpenAI contributed to a 42% stock surge in 2023.
Microsoft’s investment in OpenAI began in 2019 with a $1 billion funding commitment, followed by additional multibillion-dollar investments in 2023. The partnership centers on integrating OpenAI’s cutting-edge AI models into Microsoft programs.
The strategic partnership with OpenAI has contributed to a substantial rise in its stock value in 2023, with the stock gaining approximately 42% year-to-date. In Q2 2023, Microsoft’s Intelligent Cloud segment reported a 15% year-over-year growth, reaching $24 billion.
| 💡Did You Know? In November 2023, Sam Altman, the CEO of OpenAI, was suddenly fired by the board due to concerns about transparency and governance in AI development. The move sparked backlash within the company, with employees rallying behind Altman. Microsoft, which had heavily invested in OpenAI, quickly hired him, highlighting their strategic interest in AI. After intense negotiations and public outcry, Altman was reinstated as CEO. |
| This incident exposed the complex power dynamics and challenges of leading cutting-edge AI companies while balancing innovation and ethical oversight. |
14. NVIDIA only has $13.30 billion cash on hand, almost 83% less than other MAG7 companies.
Microsoft’s $111.26 billion cash on hand in 2023 sets the company leagues ahead in an industry where liquidity is power. This figure is not only higher than Alphabet. It is also more than the combined cash reserves of NVIDIA, Tesla, and Meta.
Meanwhile, NVIDIA’s relatively modest $13.30 billion in cash is impressive for a company of its size. However, the disparity between the traditional tech giants and the new leaders in specialized fields like AI and gaming is clear.
NVIDIA’s rapid growth is constrained by the capital-intensive nature of its industry, preventing it from accumulating cash as quickly as Microsoft. This is where different financial strategies and industry pressures come into play, with NVIDIA prioritizing reinvestment in innovation and expansion over cash accumulation.
15. Despite its market dominance, NVIDIA’s average stock price is remarkably low.
The difference between NVIDIA’s average stock price and market dominance is striking. At just $36.56, NVIDIA’s stock appears significantly undervalued next to Microsoft and Meta, which have averages of over $260.
Despite its seemingly low stock price, NVIDIA’s valuation tells a different story. The AI and GPU tech company is valued at $1.22 trillion. This discrepancy is largely due to stock splits, which can distort price perceptions.
In comparison, Apple and Tesla have stock prices that are more in line with their market caps and brand power. With stocks worth $171.47 and $217.47, respectively, both companies are valued at $2.99 trillion and 789.89 billion.
Conclusion
The facts above reveal how the Magnificent Seven holds immense financial and technological power on a global scale. From their massive market cap that dwarfs nations’ GDPs to their ground-breaking investments in research and development, MAG7 are not just tech companies but economic forces shaping the future.
As these tech giants continue to grow and evolve, the question arises: What will the long-term implications be of concentrated power in the hands of a few companies?
It could lead to continued innovation and progress, but it also sparks concerns about market monopolization. The future of global industry may very well be defined by how the MAG7 navigates these challenges.
Magnificent 7 FAQs
Who is the richest investor in the world?
Warren Buffett is the richest investor globally. He is the legendary investor and CEO of Berkshire Hathaway. Known for his value investing approach, Buffett has amassed a fortune exceeding $100 billion through stock market investments.
Which of the Magnificent 7 is undervalued?
Among the Magnificent 7, Amazon and Alphabet are sometimes considered undervalued due to their significant growth potential and diversified revenue streams, despite market fluctuations.
What percentage of the S&P 500 is Magnificent 7?
The Magnificent 7 collectively comprise approximately 27–28% of the S&P 500’s market capitalization, reflecting their massive influence on the overall index performance and investor sentiment.
By Harsha Kiran
Harsha Kiran is the founder and innovator of Techjury.net. He started it as a personal passion project in 2019 to share expertise in internet marketing and experiences with gadgets and it soon turned into a full-scale tech blog with specialization in security, privacy, web dev, and cloud computing.