Mag 7 Value Drops $2.3 Trillion As 'Great AI Reckoning' Begins
Around $2.3 trillion has been wiped off the value of the Magnificent 7 this month, but investors should prepare for an even more profound shift: within five years, today's Magnificent Seven could become the 'Magnificent Three', warns the CEO of global financial advisory giant deVere Group.
Nigel Green's analysis comes as investors increasingly question whether the world's largest technology companies will ultimately capture the extraordinary economic rewards of the artificial intelligence revolution or simply absorb the staggering costs of building it.
As second-quarter earnings season approaches in July, markets are preparing for what could be the most important reality check yet for the AI trade.
He says:
AdvertisementAs he commented last week, Nigel Green believes that the era of the Magnificent Seven as a unified market trade is coming to an end.
The deVere CEO notes that while the Magnificent Seven have shed more than $2.3 trillion in value during June, semiconductor and memory companies have continued to surge as investors increasingly back the suppliers rather than the buyers of AI infrastructure.
He continues:
The deVere CEO argues that investor nerves are likely to intensify before they settle.
He stresses that this is not a bearish call on tech itself.
Nigel Green concludes:
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