15 August 2025
Dear Fintax Investor
How big are the Magnificent 7, today’s tech giants, compared to their historic counterparts? To answer this, we can look back at the peak inflation-adjusted market capitalisations of the three largest companies in history: the Dutch East India Company (VOC), the Mississippi Company, and the South Sea Company. Together, these historic juggernauts reached a combined market cap of USD 24.1 trillion. In contrast, the Magnificent 7 (Tesla, Amazon, Apple, Alphabet, Meta, NVIDIA, and Microsoft) collectively stand at USD 18.7 trillion; approximately three-quarters of the historic giants’ peak value (as at 18 July 2025).
This comparison highlights the remarkable scale of today’s tech companies, although they have yet to surpass the combined dominance of the 17th- and 18th-century trading giants. The VOC led with a USD 10.2 trillion peak, followed by the Mississippi Company at USD 8.4 trillion and the South Sea Company at USD 5.5 trillion. Today, Nvidia tops the Magnificent 7 at USD 4.2 trillion, with Microsoft at USD 3.8 trillion and Apple at USD 3.2 trillion.
The semiconductor sector, a key driver of AI and tech innovation and a significant contributor to the rising market capitalisation of the Magnificent 7, now holds an all-time high market cap weighting in the US stock market, as shown in the chart above. This surge underscores investor enthusiasm for AI-driven growth but also highlights potential concerns about overvalued opportunities. To address this, Morningstar has maintained the Fintax Funds’ strategic position in Samsung Electronics and SK Hynix through their South Korean ETF, which has achieved a robust +45% USD return since the start of the year. This decision reflects Morningstar’s dedication to balancing growth potential with prudent valuation considerations.
Please don’t hesitate to contact us if you would like to discuss your portfolio further.