The Magnificent Seven Just Got A Secret Weapon—And It's Not AI

Zinger Key Points

The Magnificent Seven stocks have driven Wall Street to all-time highs in 2025, recovering sharply from April's tariff-driven selloff. But a new earnings catalyst is emerging—and it's not related to artificial intelligence.

It's the U.S. dollar.

According to Goldman Sachs, the recent weakness in the greenback is quietly powering a potential surge in profits for the market's biggest names—especially those with global reach.

With the U.S. dollar index (DXY) down 10% year-to-date, its worst first-half performance since 1991, companies with large international footprints are poised for a major earnings boost.

That's particularly true for the Magnificent Seven, which generate 49% of their revenue overseas—well above the 28% average for the S&P 500 and 20% for the small-cap Russell 2000.

As Goldman Sachs noted, every 10% drop in the dollar historically translates into a 2% to 3% earnings-per-share (EPS) boost for the S&P 500.

But for the Magnificent Seven—Nvidia Corp. NVDA, Microsoft Corp. MSFT, Apple Inc. AAPL, Amazon.com Inc. AMZN Alphabet Inc. GOOGL, Meta Platforms Inc. META and Tesla Inc. TSLA, — the tailwind from a weaker dollar could be far more potent.

As of July 21, the combined market capitalization of the seven tech giants has soared to a record high of $18.7 trillion.

Group/Index% of Revenue from Outside US
Magnificent Seven49%
Nasdaq 10045%
S&P 50028%
S&P 49325%
S&P 40024%
Russell 200020%
Source: Goldman Sachs

Which Sectors Win Most From Dollar Weakness?

The Magnificent Seven sit at the crossroads of tech and international sales—two key beneficiaries of currency trends.

Among S&P 500 sectors, Information Technology has the highest overseas exposure at 56%, followed by Materials (49%), Energy (37%), and Communication Services (31%).

That exposure is why Nasdaq-100 companies, which include all of the Mag 7, generate nearly 50% of revenue abroad, almost double the S&P 500's 28%. The dollar's plunge is set to amplify profit margins just as earnings season heats up.

Goldman Sachs cautioned that dollar weakness is "a smaller factor than many investors assume" for the broader S&P 500. But it acknowledged that the largest U.S. tech companies benefit most—while also facing elevated trade risks.

Alphabet Could Lead The Charge

All eyes are now on Alphabet, which reports earnings Wednesday, July 23, after the bell.

Bank of America analyst Justin Post expects foreign exchange gains to play a major role.

"We estimate a $1.3 billion FX benefit in Q2," Post said.

A weaker dollar is positive for Alphabet’s revenue trajectory, according to the expert.

“Aided by FX, we expect Q2 Search and YouTube growth to accelerate to 11% year-over-year. Given a 2-point expected FX benefit to Search, our estimate could be conservative."

Magnificent Seven Upcoming Earnings Releases

CompanyNext Earnings Date
Alphabet Inc.Wednesday, July 23, 2025 (After-Market)
Tesla Inc.Wednesday, July 23, 2025 (After-Market)
Microsoft Corp.Wednesday, July 30, 2025 (After-Market)
Meta Platforms Inc.Wednesday, July 30, 2025 (After-Market)
Apple Inc.Thursday, July 31, 2025 (After-Market)
Amazon.com Inc.Thursday, July 31, 2025 (After-Market)
Nvidia Corp.Wednesday, August 27, 2025 (After-Market)

A Surprise Tailwind Just In Time

As the Fed battles credibility issues and President Donald Trump ramps up public pressure to cut interest rates, the dollar continues to drift lower, fueling unexpected benefits for America's top firms.

That makes the next round of earnings critical. While Wall Street has obsessed over AI, this quarter's upside might come from a far more traditional source: currency weakness.

And with the Mag 7 already carrying the market on their backs, any extra tailwind—especially one worth billions—could send them even higher.

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