This year we’ve seen the stock market plunge in April, only to dramatically rebound through August. September is typically a down month as fund managers rebalance their portfolios. This year, the “Magnificent Seven” (Mag 7) companies including Alphabet/Google, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla have contributed to artificial intelligence innovation, cloud computing and digital transformation. There are many other companies that dramatically impact our work and daily lives, but especially so in higher education, as tech companies introduce new hardware, software and services. The ability of the private sector to influence R&D, employment, and future choices and careers of graduates has me thinking about the current state of the tech stock market, and its potential impact on higher education.IMPACT OF THE MAGNIFICENT SEVEN
There is no question the Mag 7 dynamically impact the stock market. These companies embody enormous technical innovation, market domination and financial strength. Through August 2025, they accounted for over 30 percent of the total value of the S&P 500 and accumulated nearly a 700 percent return from 2015-2024. As noted by the finance website Investopedia in August, this group of companies operates in the sectors of tech services, electronic technology, retail and consumer durables. Each of these companies share common attributes, Investopedia wrote, including adaptability, financial health, global reach, strong market position and worldwide brand recognition.

There is no question Microsoft [MSFT] is embedded throughout higher education. Whether it’s Windows OS, Office software or Azure, institutions run on Microsoft. The company is also at the forefront of AI innovation, particularly with its $13 billion investment in ChatGPT which faculty, staff and students utilize. Microsoft has also been able to navigate around the impact of tariffs. While its stock price plummeted to $349 a share in April, it has since rebounded as high as $500. Some might say Microsoft has an “economic moat,” which is a sustainable competitive advantage. Microsoft promotes the concept of “reimagining higher education” through its many technology options in hardware, software and cloud services.

Alphabet is a global mega tech company and parent holding company of Google [GOOG and GOOGL]. It has the world’s top search engine, the largest worldwide email service, Waymo (an autonomous vehicle company), and the cybersecurity company Mandiant. Its AI competition to ChatGPT is Gemini AI.

Over the past 10 years, Alphabet has generated a return of nearly 500 percent, and GOOGL sells at nearly $250. Its products, applications and cloud storage tools are prevalent throughout all levels of education. In August 2025, Google announced it would be spending $1 billion over the next three years on AI training in higher education.

NVIDIA Corporation [NVDA] has been on a meteoric rise over the past several years. The company designs and sells specialized high-performance graphics processors, particularly for AI, and especially those utilized in data centers to handle large processing demands. In 2020 the stock price was nearly $12, and today it sells at nearly $200, with the company’s overall market value passing $4 trillion. As NVIDIA states in its use cases, it’s goal is to unlock the future of education to assist “researchers, educators, and students to push the boundaries of what’s possible in academia and every industry.”

Apple Inc. [AAPL] is known for IoT devices for work, school and entertainment, as well as for applications and services. Over the past decade, shares of Apple have risen to nearly 700 percent. On its website, Apple says it helps higher education by providing innovative technology to push “ideas and defy … limitations.” Whether it is hardware or software, it’s obvious that faculty, staff and students rely upon Apple to “teach, innovate and inspire.” Interestingly, at its recent marketing event, Apple appeared more focused on new tech gadgets and upgrades than AI. As market analyst Gadjo Sevilla noted in CNN Business, “Apple (is) sidestepping the heart of the AI arms race while positioning itself as a longtime innovator on the AI hardware front. It’s a reminder that Apple’s competitive advantage remains rooted in product experience rather than raw AI as a product.”OTHER COMPANIES OF IMPACT
There are many other companies in various sectors which can have a direct or indirect impact on higher education. One continual growth area includes companies offering learning management systems and e-learning products and services. From e-learning degrees and certificates to online courses, company stock names such as Coursera [COUR], Udemy [UDMY] and Pearson [PSO] come to mind. Experts suggest the e-learning market may see incredible growth in the coming years, with some sources projecting revenue will exceed $600 billion by 2030. The company offerings can and will compete for the traditional market of public and private universities.

Cybersecurity protection, detection and monitoring continue to be critically important for higher education. Many publicly traded companies are developing close partnerships and working with higher education to provide comprehensive products and services. Some of the commonly referred names include Fortinet [FTNT], Palo Alto Networks [PANW], Okta [OKTA] and Zscaler [ZS].

As the higher education sector further increases its expenditures on cybersecurity tools and services, and this trend will continue. According to an April 2024 report from the bond rating business Moody’s Investor Services, “higher education institutions allocating a portion of their budget to cybersecurity increased more than 70 percent from 2019 to 2023.”

NEW GOVERNMENTAL INVESTMENT IN TECHNOLOGY
A new dynamic has emerged in 2025 with governmental investment in technology companies. This year the U.S. government is taking a 10 percent stake in Intel [INTC], which is valued at nearly $9 billion. As reported earlier this month by Yahoo Finance, some experts see this move as a way to add more liquidity to the company, while others point out the potential risk of the government limiting “Intel’s flexibility by pressuring the company into projects that may not deliver adequate returns.” In addition, the government has taken a 10 percent stake in Palantir [PLTR] for $10 billion for data analytics and AI, and for operations related to national security, immigration and other data-mining activities.WHAT’S AT STAKE
Considering how much higher education depends on corporate America, what does the future impact look like? Campuses need technology tools and services, and their potential purchase will depend upon cost and available budgets. The potential impact of international trade, tariffs and product availability could impact institutional decision-making. Beyond the direct impact on technology departments, how universities can partner with technology companies, as well as provide qualified graduates for employment, will be another important consideration. How university and college foundations select technology companies in their investment endowment portfolio could affect their annual returns. Understanding and reacting to the potential impact of the stock market can provide important insights for today’s higher education institutions.