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. (NASDAQ:NVDA), Microsoft Corp. (NYSE:MSFT), Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN) Alphabet Inc. (NASDAQ:GOOGL), Meta Platforms Inc. (NASDAQ:META) and Tesla …