FAZILA MANJOO: High noon for big tech?
AI is still the fastest gun in the West, despite some hiccups in Magnificent 7 performance in recent months
The Magnificent 7 — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla — have dominated the global market over the past few years. The catchy wordplay refers to the title of the 1960 Western about seven American mercenaries fighting in a foreign land. One should, though, also remember how The Magnificent Seven ends: the heroes move on, admitting their ultimate transience in a world that is changing without them.
Since Russia invaded Ukraine in 2022, geopolitical risks have affected global activity and inflation, harming consumer sentiment and raising commodity prices. To bring inflation under control, central banks globally hiked interest rates. The tighter financial conditions bruised markets. In late 2022, AI came into focus. The companies that monopolised the world’s attention with new technologies, strong earnings and attractive balance sheets became known as the Magnificent 7. They are all great brands with powerful visions that have the means to invest heavil...
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