Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. The race among the “Magnificent Seven” tech giants to construct large AI data centers is having an unforeseen effect on share buybacks, a recent Goldman Sachs report reveals. AI Data Center Push Slows S&P 500 Buybacks In 2025 The Magnificent Seven — Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta (NASDAQ:FB), and Tesla (NASDAQ:TSLA) al ...

Group 1 - Billionaire investor John Paulson's hedge fund, Paulson & Co., opened a new position in Alphabet, Inc. by purchasing 9,000 shares during Q2 2025 [1] - This investment in Alphabet represents a strategic move into the tech sector, although it constitutes a modest portion of the overall portfolio by value [2] - Paulson's fund significantly increased its holdings in gold miner Perpetua Resources Corp. by adding over 7.5 million shares, raising the total stake value to nearly $92 million, indicating strong confidence in the company's future [3] Group 2 - In addition to the investment in Perpetua Resources, Paulson & Co. also increased its position in Bausch Health Companies, Inc. while reducing exposure to Madrigal Pharmaceuticals, Inc. during the same quarter [3]

Group 1 - U.S. tech giants are increasingly leveraging AI to enhance various aspects of their businesses, including revenue acceleration and cost reduction [1] - The trend involves smarter targeting, pricing, and execution, allowing companies to achieve more with fewer resources [1] Group 2 - The article highlights the role of analysts in identifying growth and income stocks with high expected returns and solid margins of safety [1] - It emphasizes the importance of providing actionable trading ideas across different asset classes, sectors, and industries to a community of investors [1]

Core Viewpoint - The "Magnificent Seven" tech giants, which previously led market gains, are now experiencing significant declines due to concerns over new import tariffs announced by President Trump, affecting their cost structures and consumer spending [1][2][3]. Group 1: Impact of Tariffs - The new import tariffs will increase costs for U.S. companies, including the Magnificent Seven, as they rely on imported raw materials and finished goods [3][8]. - The tariffs, with a baseline of 10% and higher rates for many countries, have led to a bear market for growth stocks, particularly impacting the Nasdaq [6][7]. - Companies like Nvidia, which produce chips in Taiwan, will face tariffs as high as 32%, further straining their profit margins [8]. Group 2: Long-term Investment Perspective - Despite the current challenges, the Magnificent Seven are still considered strong long-term investments due to their established market positions and growth potential, particularly in sectors like AI [10][15]. - The recent decline in valuations offers investors an opportunity to acquire these tech giants at lower prices, with companies like Alphabet and Meta Platforms trading at less than 20 times forward earnings estimates [13][14]. - The companies have experience managing economic headwinds and may find ways to mitigate the impact of tariffs, such as cost-cutting measures [12].

Key Takeaways The US stock market is currently experiencing one of its sharpest corrections in recent history, driven by uncertainty around trade policy and declining economic growth forecasts. President Donald Trump's frequent shifts in international tariff rhetoric have left businesses and investors navigating a rapidly changing landscape. At the same time, aggressive fiscal tightening and a weakening wealth effect are weighing on consumer confidence and future outlooks. Some of the hardest-hit names this ...