Magnificent Seven IT Giants’ Revenue Growth to Halve by 2025

The publication believes that investors may divert their attention from the leading companies in the high-tech market (Google, Amazon, Nvidia, Apple, Meta, Microsoft and Tesla) to other areas of the US economy due to a slowdown in rates of income growth. of these companies.

At the same time, Bloomberg’s forecast for earnings growth for companies in the S&P 500 index for 2025 is 13% instead of 10% for 2024; Therefore, technology giants may lose their dominant place in the stock market and corporate economies. On the other hand, the first place next year will be occupied by the health sector, whose income will increase by almost 20%.

“[Бигтех] will not necessarily become the engine of market growth in [2025 году]as has happened over the last year,” Janus Henderson portfolio manager Julian McManus told Bloomberg.

The publication, citing data from Bank of America, reports that investors have already begun dumping Big Tech stocks en masse. In the last six weeks, outflows totaled $1.4 billion, while small caps received about $4.6 billion.

The only exception, according to Bloomberg, is Nvidia, the leading manufacturer of data center processors. According to the agency’s forecasts, Nvidia’s profit in 2025 will be $71 billion on revenues of $129 billion, 49% and 52% more than in 2024, respectively. The company’s revenue in the third quarter of this year increased 94% year-on-year and data center revenue growth was 112%.

The company has repeatedly surpassed Apple in capitalization, becoming the most valuable company in the world with a market value of more than $3.6 trillion. At the time of publication of the material, Nvidia’s capitalization is $3.4 trillion. According to Statista, in 2019, Nvidia generated more than 90% of its revenue through the sale of GPUs. As of March 2024, there are more than 5.3 thousand data centers in the United States, most of which are powered by Nvidia chips.