The grip of the so-called “Magnificent Seven” tech companies on US stock markets has loosened as investors focus on concrete results rather than solely on artificial intelligence’s potential.
The seven largest tech groups — Microsoft, Apple, Amazon, Alphabet, Meta, Tesla and Nvidia — drove most of last year’s stock market gains as traders bet that they would be winners from the growth of AI. But gaps between them have widened as all but one reported financial results over the past few weeks.
“It is not trading as a bloc any more,” said Jim Tierney, a growth-focused portfolio manager at AllianceBernstein. “Last year everybody got the AI halo . . . [now] the market is starting to zero in on what are the individual prospects of each of the Magnificent Seven as opposed to treating them as one security.”