Is Europe losing the AI race? Magnificent Seven widen gap over Europe's giants
While the broader European equity market has outperformed the S&P 500 so far this year, the continent's corporate heavyweights are falling behind in the global stock market hierarchy. The gap highlights a deeper transatlantic divide in innovation, private capital, and long-term competitiveness.
As of mid-July, the combined market capitalisation of Europe's seven largest listed firms — SAP, Novo Nordisk, Hermès, ASML, LVMH, Roche and Nestlé — stands at $2.2 trillion (€1.73tr), virtually flat year-to-date.
That puts the combined market cap of US 7 largest companies at $18,8 trillion vs. of EU's largest.
By contrast, the US 'Magnificent Seven' — Nvidia, Microsoft, Apple, Amazon, Alphabet, Meta and Broadcom (instead of Tesla) — have reached a cumulative valuation of $18.8tr (€16.12tr), up 10.2% since the start of the year.
Tech dominance defines the US-EU divergence
The divergence reflects the central role of technology and artificial intelligence in today's equity market leadership.
Seven out of seven of the largest US companies are technology firms with significant exposure to AI infrastructure, cloud computing or data platforms.
In Europe, just two companies in the top seven — SAP and ASML — are active in the technology sector, with the remainder concentrated in luxury goods, pharmaceuticals and consumer staples.
Nvidia alone is valued at €3.59 trillion, larger than the combined market cap of Europe's top seven. Its dominance is tied to its role in powering AI infrastructure worldwide, from model training to real-time inference.
'While the others use AI to power their platforms and services, Nvidia supplies the very foundation on which those ambitions are built,' said Natalie Hwang, founder of Apeira Capital, in an emailed comment.
'It quietly enables the success of every other member of the Magnificent Seven, while remaining their most indispensable partner.'
According to industry estimates, Meta, Amazon, Alphabet and Microsoft are set to spend over $320 billion (€294 billion) on AI infrastructure in 2025, much of it focused on inference optimisation and hyperscale data centres.
Related
Strangers Things have happened: Netflix profits soar but investors are not happy
Bitcoin bubble? How much more is it expected to rise in 2025?
JP Morgan Chase's message to Europe: 'You're losing'
JP Morgan Chase chief executive Jamie Dimon reinforced the broader concerns over Europe's global position during remarks at a recent event in Dublin hosted by the Irish foreign ministry.
'Europe has gone from 90% of US GDP to 65% over 10 or 15 years. That's not good,' Dimon said. 'You're losing.'
He pointed to overregulation, fragmentation, and weak productivity as structural weaknesses, and urged European leaders to act on the 2024 report led by former ECB President Mario Draghi, which recommended €800 billion in annual investment to strengthen industrial competitiveness.
Dimon added: 'We've got this huge, strong market and our companies are big and successful, have huge kinds of scale that are global. You have that, but less and less.'
Related
ASML sees share price drop as Trump's tariffs darken outlook
A moment of reckoning
The diverging fortunes of the Magnificent Seven and Europe's corporate champions symbolise a broader transatlantic imbalance—not just in technology, but in economic dynamism.
While Europe's top firms are respected global brands, they are increasingly eclipsed by American companies that are not only growing faster but also shaping the future. The AI race has become a litmus test for global economic relevance.
If Europe is to keep pace, it must resolve its innovation shortfall, energise private investment, and modernise regulation.
Otherwise, as Dimon put it bluntly: 'You're losing.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fast Company
11 minutes ago
- Fast Company
Why business schools need to teach character development
Programs to help students discern their vocation or calling are gaining prominence in higher education. According to a 2019 Bates/Gallup poll, 80% of college graduates want a sense of purpose from their work. In addition, a 2023 survey found that 50% of Generation Z and millennial employees in the U.K. and U.S. have resigned from a job because the values of the company did not align with their own. These sentiments are also found in today's business school students, as Gen Z is demanding that course content reflect the changes in society, from diversity and inclusion to sustainability and poverty. According to the Financial Times, 'there may never have been a more demanding cohort.' And yet, business schools have been slower than other schools to respond, leading to calls ranging from transforming business education to demolishing it. What are business schools creating? Historically, studies have shown that business school applicants have scored higher than their peers on the ' dark triad' traits of narcissism, psychopathy and Machiavellianism. These traits can manifest themselves in a tendency toward cunning, scheming and, at times, unscrupulous behavior. Over the course of their degree program, other studies have found that business school environments can amplify those preexisting tendencies while enhancing a concern for what others think of them. And these tendencies stick after graduation. One study examined 9,900 U.S. publicly listed firms and separated the sample by those run by managers who went to business school and those whose managers did not. While they found no discernible difference in sales or profits between the two samples, they found that labor wages were cut 6% over five years at companies run by managers who went to business school, while managers with no business degree shared profits with their workers. The study concludes that this is the result ' of practices and values acquired in business education.' But there are signs that this may be changing. Questioning value Today, many are questioning the value of the MBA. Those who have decided it is worth the high cost either complain of its lack of rigor, relevance and critical thinking or use it merely for access to networks for salary enhancement, treating classroom learning as less important than attending recruiting events and social activities. Layered onto this uncertain state of affairs, generative artificial intelligence is fundamentally altering the education landscape, threatening future career prospects and short-circuiting the student's education by doing their research and writing for them. This is concerning because of the outsized role that business leaders play in today's society: allocating capital, developing and deploying new technologies and influencing political and social debates. At times, this role is a positive one, but not always. Distrust follows that uncertainty. Only 16% of Americans had a 'great deal' or 'quite a lot' of confidence in corporations, while 51% of Americans between 18 and 29 hold a dim view of capitalism. Facing this reality, business educators are beginning to reexamine how to nurture business leaders who view business not only as a means to making money but also as a vehicle in service to society. Proponents such as Harry Lewis, former dean of Harvard College; Derek Bok, former president of Harvard University; Harold Shapiro, former president of Princeton University; and Anthony Kronman, former dean of the Yale Law School, describe this effort as a return to the original focus of a college education. Not ethics, but character formation Business schools have often included ethics courses in their curriculum, often with limited success. What some schools are experimenting with is character formation. As part of this experimentation is the development of a coherent moral culture that lies within the course curriculum but also within the cocurricular programming, cultural events, seminars and independent studies that shape students' worldviews; the selection, socialization, training and reward systems for students, staff and faculty; and other aspects that shape students' formation. Stanford's Bill Damon, one of the leading scholars on helping students develop a sense of purpose in life, describes a revised role for faculty in this effort, one of creating the fertile conditions for students to find meaning and purpose on their own. I use this approach in my course on vocation discernment in business, shifting from a more traditional academic style to one that is more developmental. This is relational teaching that artificial intelligence cannot do. It involves bringing the whole person into the education process, inspiring hearts as much as engaging heads to form competent leaders who possess character, judgment and wisdom. It allows an examination of both the how and the why of business, challenging students to consider what kind of business leader they aspire to be and what kind of legacy they wish to establish. It would mark a return to the original focus of early business schools, which, as Rakesh Khurana, a professor of sociology at Harvard, calls out in his book ' From Higher Aims to Hired Hands: The Social Transformation of American Business Schools and the Unfulfilled Promise of Management as a Profession,' was to train managers in the same vocational way we train doctors 'to seek the higher aims of commerce in service to society.' Reshaping business education Institute for Social Concerns and Bates College's Center for Purposeful Work and courses such as Stanford University's Designing Your Life and the University of Michigan's Management as a Calling. These are but a few examples of a growing movement. So, the building blocks are there to draw from. The student demand is waiting to be met. All that is needed is for more business schools to respond.
Yahoo
16 minutes ago
- Yahoo
Asian Headlines at 4:16 a.m. GMT
A loss for Ishiba could worsen Japan's instability in the face of US tariffs and rising prices Solve the daily Crossword
Associated Press
42 minutes ago
- Associated Press
Bitcoin Solaris Presale Projects 4x Gains with Guaranteed $20 Launch Price
TALLINN, Estonia, July 20, 2025 (GLOBE NEWSWIRE) -- Bitcoin Solaris (BTC-S) is stealing the spotlight in the crypto world as more analysts point toward its potential to turn a modest $1,000 into $4,000 at launch. While the market continues throwing out new tokens every week, few bring the combination of strong fundamentals, breakthrough technology, and sheer investor momentum like BTC-S. This is not your typical presale project hoping for a lucky break. It is built to deliver. Why Bitcoin Solaris Is the Standout in 2025 Bitcoin Solaris does not rely on empty promises. Its strength comes from its hybrid Proof-of-Work and Delegated Proof-of-Stake consensus, delivering lightning-fast speeds while maintaining security at scale. This dual-consensus architecture brings scalability and decentralization together in a way few projects achieve. Through the exciting release of the upcoming Solaris Nova App, Bitcoin Solaris takes mining mainstream. Mobile, desktop, and browser mining means users can participate without expensive rigs or technical headaches. Influencers Are Highlighting BTC-S Potential Influencers and crypto reviewers are spotlighting Bitcoin Solaris as one of the smartest plays this cycle. This Time It's Not Just a Boom It's the Rise of Bitcoin Solaris Presale Momentum Shows No Signs of Slowing Bitcoin Solaris is moving fast through Phase 12 of its presale. With just around 2 weeks left before launch on July 31, 2025, investor interest keeps rising. Over 14,200 unique investors have already joined. More than $6.6M has been raised, making this one of the most explosive presales of the year. Wallets like Trust Wallet and Metamask are recommended for receiving tokens on launch day. BTC-S makes it clear these wallets are for delivery, not presale purchasing. Secure your allocation through Bitcoin Solaris. Mining for Everyone Made Simple Bitcoin Solaris is rewriting the rules on mining with the upcoming Solaris Nova App. Forget expensive equipment and complex setups. Users can calculate their mining potential using the BTC-S calculator. Sustainable Tokenomics for Long-Term Value Bitcoin Solaris ensures a balanced distribution model focused on growth and sustainability. More details are available at the BTC-S Tokenomics. This structure guarantees BTC-S stays decentralized and in the hands of participants who build its future. Final Thoughts: BTC-S Is Built to Deliver Bitcoin Solaris is not just another crypto presale. It is an ecosystem built for scale, accessibility, and long-term adoption. With its dual-consensus model, mobile-first mining, and tokenomics designed for sustainability, BTC-S is positioned to turn small investments into substantial returns. The $20 launch price is around the corner, and this presale window will not last much longer. For more information on Bitcoin Solaris: Media Contact: Xander Levine [email protected] Press Kit: Available upon request Disclaimer:This content is provided by Bitcoin Solaris. The statements, views, and opinions expressed in this content are solely those of the content provider and do not necessarily reflect the views of this media platform or its publisher. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information do not guarantee any claims, statements, or promises made in this content is for informational purposes only and should not be considered financial, investment, or trading advice. Investing in crypto and mining-related opportunities involves significant risks, including the potential loss of is possible to lose all your capital. These products may not be suitable for everyone, and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. However, due to the inherently speculative nature of the blockchain sector—including cryptocurrency, NFTs, and mining—complete accuracy cannot always be guaranteed. Neither the media platform nor the publisher shall be held responsible for any fraudulent activities, misrepresentations, or financial losses arising from the content of this press the event of any legal claims or charges against this article, we accept no liability or responsibility. GlobeNewswire does not endorse any content on this page. Legal Disclaimer: This media platform provides the content of this article on an 'as-is' basis, without any warranties or representations of any kind, express or implied. We assume no responsibility for any inaccuracies, errors, or omissions. We do not assume any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information presented herein. Any concerns, complaints, or copyright issues related to this article should be directed to the content provider mentioned above. Photos accompanying this announcement are available at
