Share prices of the so-called “Magnificent Seven” stocks – Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla – have soared since they listed, even when accounting for share splits that have diluted their values over the years.
Every one of them are among the top 10 most valuable companies on US bourses. Combined, these seven companies are now worth a staggering $20.09 trillion (R344.4 trillion) – more than the GDP of every country except the United States.
The term Magnificent Seven was coined by Bank of America analyst Michael Hartnett in 2023, borrowing from the classic Western film when commenting on these seven companies. The stocks are, according to Investopedia, “the most influential companies in the US stock market”.
Microsoft was the first to be listed on the Magnificent Seven list, with Meta being the baby of the group. Four companies – Amazon, Apple, Microsoft and NVIDIA – survived the dot-com bubble.
All seven companies have undergone one or more share splits since listing, some repeatedly. This dilutes the share price by the split ratio – for instance, Apple’s share price on listing would have been just $0.10, adjusting for splits.
On that basis, Apple’s share price has jumped 278 750% since its 1980 listing. Every company has delivered exceptionally high returns thanks to consistent revenue growth, dominance in core markets, and expansion into new technology segments.
Here’s a look at how each stock has performed, stripping out share splits, in alphabetical order and based on ITWeb’s research.
Alphabet (previously Google)
Alphabet, which was Google until October 2015, has seen its share price climb 276% – the lowest gain out of all the Magnificent Seven – since listing in August 2004 at $85 (R1 457 at this morning’s exchange rate of R17.14).
That stock is now worth $320.12 (R5 549) thanks to Google turning itself into the de facto search engine and then becoming a global advertising engine with extremely high margins. Its current share price makes it worth $2.5 trillion (R42.86 trillion) and it’s at the number five position in terms of market capitalisation.
Search advertising was its financial core for two decades, giving it a stable cash base to fund expansion into YouTube, Android, Maps and, later, cloud computing.
YouTube became one of the largest digital media platforms in the world, strengthening advertising revenue, while Android’s ubiquity ensured Google services remained deeply embedded across mobile devices.
Google Cloud then added a second major business line as enterprises shifted workloads into the cloud. More recently, Alphabet’s artificial intelligence (AI) investments – including infrastructure, models and applied AI in search – have supported investor expectations of long-term revenue growth.
Amazon
Amazon’s increase reflects how it built and dominated three major industries: e-commerce, cloud infrastructure and logistics. Currently worth $233.22 (R3 998) a share, its stock has returned 1 195% since it listed in May 1997. That places it at fifth on the most valuable companies list, with a valuation of $2.49 trillion (or R42.69).
The company’s reinvestment strategy – prioritising growth over profits for years – allowed it to build a reputation for good fulfilment of orders to consumers, warehousing and last-mile delivery capacity.
This scale advantage improved margins as the business matured. The turning point for investor confidence came with the launch of Amazon Web Services (AWS), which became the world’s largest cloud platform and one of the highest-margin businesses in tech.
AWS earnings funded further expansion, while subscribers of its streaming product, Prime, locked customers into the ecosystem and increased purchasing frequency.
Taken together, these factors supported the company’s long-term market value.
Apple
Apple’s growth since 1980 has come from repeated reinvention, taking its current share price without stock splits to $278.85 each (R4 780) – having risen 1 167% and making it the second most valuable company in the world with a value of $4.123 trillion (R70 trillion) as it chases NVIDIA for the top spot.
After stabilising the Mac business, the company transformed consumer electronics with the iPod and then the iPhone, creating a device that has dominated global smartphone profitability since 2007.
The iPhone platform led to the App Store, which generated recurring revenue and strengthened the company’s ecosystem. Apple then expanded into services – iCloud, music, TV+, payments and device financing – giving it predictable, high-margin income not tied to annual device cycles.
Its integration of hardware, software and chip design improved performance and reduced supplier risk, supporting long-term revenue growth.
Meta (previously Facebook)
Meta’s share price climbed 1 605% from its listing at $38 (R651) in May 2012, because the company built and monetised the world’s largest social platforms: Facebook, Instagram and WhatsApp. It’s now the seventh most valuable company, with a market capitalisation of $1.6 trillion (R27.43 trillion).
Its ad targeting capabilities, driven by data and algorithmic optimisation, created what is seen as one of the most efficient digital advertising systems ever developed. Instagram’s shift to video and algorithmic feeds materially increased engagement, supporting revenue growth.
Despite periods of regulatory pressure, with the company coming under scrutiny by competition authorities over anti-competitive behaviour and the expensive metaverse shift, Meta reduced costs, improved ad efficiency, and invested in AI recommendation systems that significantly raised user activity.
These operational improvements and the scale of its advertising network are the reasons behind its long-term share gains.
Microsoft
Microsoft has delivered gains of 2 242% to a share price of $491.92 (R8 148) since listing in 1986, which reflects a major business model pivot. After years of stagnation, the company shifted from boxed software to subscription services through Office 365, which pulls in stable, recurring, revenue.
This has helped boost it to fourth place on the most valuable list, worth $3.65 trillion (R62.58 trillion).
Its Azure cloud offering saw a rapid rise that established Microsoft as a leading cloud provider, capturing enterprise workloads globally.
The company strengthened its product suite through LinkedIn, GitHub, Teams and a strong cyber security portfolio, which gave it deep access to corporate IT environments. Its commitment to AI – through partnerships, infrastructure spending and integration into Office and cloud tools – has further expanded growth expectations.
The combination of cloud, subscriptions and enterprise stickiness drove decades of market value expansion.
NVIDIA
NVIDIA’s significant gains stem from its early decision to develop graphics processing units for gaming, which later became essential hardware for AI and high-performance computing.
Its share price has gained 1 391% since it listed in January 1999, to $178.98 (R3 068) now, which takes its valuation to $4.3 trillion (R73.72 trillion) and makes it the world’s most valuable company. At the end of October this year, it breached the $5 trillion mark – a record value.
When demand for AI model training surged, NVIDIA controlled the dominant architecture and software ecosystem, giving it a near-monopoly advantage in AI data centres, although Google is now a serious challenger with its Gemini 3 offering that has received rave reviews.
Before serious competition entered the market, NVIDIA’s chips became critical infrastructure for every major AI developer, cloud provider and enterprise AI project.
The company expanded into automotive computing, edge AI and robotics, further widening its addressable market. Strong supply constraints and NVIDIA’s reputation for chips with unmatched performance ensured consistent high demand for its products, driving sustained share-price growth over time.
Tesla
Tesla has delivered the highest percentage gain of all the Magnificent Seven, with returns of 2 430% since listing in June 2010, and is now trading at $430.17 (R7 375), making it the 10th most valuable company in the world with a value of $1.43 trillion (R24.52 trillion).
The electric vehicle and clean-energy company is known for redefining the global automotive industry through battery innovation, software-driven manufacturing and large-scale renewable energy products. However, its self-driving cars also have a reputation for going rogue and causing accidents.
Tesla, which was founded in 2003, has accelerated growth after shifting to mass-market models and expanding its Gigafactory footprint worldwide.
The company focuses heavily on vertical integration, using in-house battery technology, proprietary charging infrastructure and autonomous driving software to differentiate its offering. Its rapid scale-up, strong brand and early-mover advantage in electric vehicles have made it one of the most well-known technology-driven manufacturers in the world.
Founder Elon Musk has also built other companies, including SpaceX, which operates the low-Earth-orbit broadband network known as Starlink.
* All comparative local currency values of the companies’ share prices as of listing are as of this morning’s exchange rate of R17.14 and not as of when they listed, as this is for indicative purposes only.
** This article is for informational purposes only and does not constitute financial or investment advice. Past performance does not guarantee future results. Readers should conduct their own research and consult with qualified financial advisors before making investment decisions.
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