SBI Research: Magnificent Seven debt jumps 45% to $578B, warns rising yields could erase $1.67-2T in market value
What happened
SBI Research, the economic research arm of State Bank of India, reported overnight that the combined debt of the Magnificent Seven has risen nearly 45% to $578 billion by mid-2026, up from about $399 billion in 2025 and roughly 1.7 times the group's 2023 debt level. The report flags that balance-sheet debt is only part of the picture: the seven companies also carry substantial off-balance-sheet commitments tied to purchases and investments for AI data centers, chips and power. Using an equity-duration approach, SBI estimates that a rise in bond yields could cut the group's combined ~$23 trillion market value by $1.67-2 trillion. The note also calls Anthropic's expected listing around November 12 (targeting a $1.5-2T valuation) a 'high-stakes litmus test' for whether AI revenues can justify infrastructure costs.
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Start your free 14-day trialWho’s affected
- All seven Mag 7 names — Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), Tesla (TSLA); broad growth/tech multiples via the discount-rate channel; credit markets (high-yield spreads already widening, +12bp to 326bp Friday). Apple and Microsoft relatively less exposed given cleaner balance sheets and positive free cash flow
- Alphabet and Amazon most exposed given negative free cash flow.