The Stupendous Seven: AI Spending Fades the Mag Seven Halo
Key Points:
* Once-boastful Mag Seven tech giants face headwinds due to AI spending concerns.
* Meta emerges as the only outperformer, posting double-digit gains year-to-date.
* Tesla underperforms due to lackluster sales and tariff worries.
* Six Mag Seven members report disappointing earnings since the fourth quarter.
* Big Tech's massive AI infrastructure investments raise concerns over profit margins.
* Amazon, Microsoft, and Alphabet plan to spend a cumulative $325 billion on capital expenditures.
* Analysts debate if Mag Seven weakness will spill over into the broader market, given its increasing weight within the S&P 500.
* Nvidia's upcoming earnings on Feb. 26 will serve as a near-term indicator for the Mag Seven.