Magnificent Seven, the most valuable and most purchased companies

Large-cap tech companies, known as the Magnificent Seven, have led the Wall Street rally, and investments in artificial intelligence have fueled acquisitions.

NVIDIA, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla, companies collectively worth more than $19 trillion, represent nearly a third of the S&P 500's market capitalization.

Collectively, these issuers have acquired a total of 846 companies since their initial public offerings (IPOs). The majority of these subsidiaries are technology-oriented.

First, Alphabet, Google's parent company, has acquired a total of 270 companies, with notable acquisitions including YouTube, Waze, Motorola, Nest Labs, DoubleClick, Looker, and Wiz. These acquisitions span a variety of sectors, from entertainment (YouTube) to navigation (Waze) and cybersecurity (Wiz).

Microsoft, the software developer, has acquired 250 companies. Among the most notable are LinkedIn, GitHub, Skype, Mojang (creators of Minecraft), Activision Blizzard, and ZeniMax Media. It has also invested in companies such as OpenAI, the creator of ChatGPT.

Joining this list is the leading e-commerce platform, Amazon, with 105 acquisitions, including Whole Foods Market, Twitch Interactive, Zoox, and Audible.

The companies acquired by the Magnificent Seven range in sectors from supermarket chains, live streaming platforms, and autonomous driving technology.

iPhone maker Apple has acquired 100 companies. Some of the most notable are Beats Electronics (audio and music) and Shazam (music recognition). It has also made significant acquisitions in the field of artificial intelligence, such as Siri, Cue, and PrimeSense.

Meta has made 95 acquisitions. Notable among these are Instagram, WhatsApp, Oculus VR (now Reality Labs), and most recently, a 49% stake in Scale AI.

NVIDIA has invested in 20 companies, including OpenAI, Cohere, Mistral, Perplexity, and CoreWeave, primarily AI startups. Tesla, the electric car maker, has just six acquisitions to its name, including SolaryCity, Maxwell Technologies, SpaceX, the social network X, and Neuralink.

Experts at Monex Casa de Bolsa believe that technology companies have a positive outlook for the remainder of the year, driven by Artificial Intelligence (AI). "While this is a favorable year for the sector, in our risk assessment of artificial intelligence, we continue to believe that both the United States and China could implement measures in the semiconductor sector, which could lead to a reconfiguration or slight changes in current market share."

On Wall Street they lead

The Magnificent Seven are expected to gain more than $2.1 trillion in combined capitalization value by 2025. The Roundhill Magnificent Seven exchange-traded fund (ETF) is up 11.14% to 60.48 units this year. The ETF seeks to gain exposure to the seven largest companies in the technology industry.

NVIDIA shares rose the most on the stock market, up 34.37%, followed by Meta, which rose 34.11%, and Microsoft, which climbed 23.41%. Alphabet and Amazon also gained 7.71% and 5.31%, respectively.

On the other hand, it is observed that Apple (-7.52%) and Tesla (-18.52) show falls in their shares.