Wall Street's once-unstoppable tech giants, known as the Magnificent Seven, are facing waning investor interest. Despite strong performance in recent years driven by AI investments, the group's growth is slowing, and concerns about high capital spending and market saturation are prompting investors to seek opportunities elsewhere.
The " Magnificent Seven ," once Wall Street's indisputable stalwart, is losing its shine with investors. The group — made up of Apple , Microsoft , Alphabet , Amazon , Nvidia , Meta Platforms and Tesla — led the market higher in the past few years amid growing investments around artificial intelligence. In the past 12 months, Nvidia and Tesla have rallied 87% each, while Meta has soared more than 52%. That's well ahead of the S & P 500's 20% advance in that time.
"Anxiety has continued to build around Magnificent Seven generative artificial intelligence-related capex spending and the extent to which players appear engaged in a multiyear race for dominance. Amid this development, Mag 7 earnings growth rates have been decelerating and are poised to continue to do so, converging with those expected from 'the 493' non-Mag 7 stocks," she remarked. Investors appear to already be shifting assets to other parts of the market.
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