The group of major tech companies known as the 'Magnificent Seven' (Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla) is facing growing disparities in stock performances due to the increasing importance of artificial intelligence (AI).
Change in Stock Positions
This year, Nvidia, Microsoft, and Meta stocks have increased by over 20%. In contrast, Apple’s stock has dropped by 16%, Alphabet has decreased by 2%, and Tesla is down 18%. All seven companies account for approximately 35% of the S&P 500 index.
Impact of Artificial Intelligence
Apple is falling behind competitors: the anticipated release of Apple Intelligence was unsuccessful, and updates to Siri are delayed. Alphabet is under antitrust pressure and faces threats from AI chats. Tesla is shifting towards robotics and AI, a strategy that has not yet instilled confidence in investors.
Prospects and Expectations
Nvidia is taking the lead, with its stock having tripled in the past two years, while Meta and Microsoft are expanding their presence in AI. Amazon, though not showing significant rally, is improving its position through AI investments. All eyes are now on the second-quarter earnings reports.
The widening performance gap among the 'Magnificent Seven' highlights the critical impact of artificial intelligence on the tech sector.
