Group 1 - The "Magnificent Seven" consists of Meta, Microsoft, Amazon, Alphabet, Apple, Nvidia, and Tesla, which together account for nearly 40% of the S&P 500 index [1] - These companies have been the primary drivers of Wall Street's market rally over the past 18 months, but recent developments indicate potential vulnerabilities in their dominance [1] Group 2 - The Magnificent Seven form a highly interconnected ecosystem focused on artificial intelligence investments and infrastructure, relying on each other for AI spending and product development [2] - Microsoft utilizes Nvidia's AI chips for its Azure cloud platform, which also supports Nvidia's AI workloads [2] - Meta invests significantly in AI infrastructure, with a substantial portion of its spending directed towards Nvidia [2] - Amazon employs AI to enhance its AWS cloud services, which is one of the largest cloud infrastructures globally [2] - Alphabet leads in AI research and product development, integrating substantial cloud and AI services into its offerings [2]
Big Tech’s AI Obsession Is Shaking Wall Street: A Deep Dive into the Magnificent Seven