Apollo Economic: Mag 7 may not be the best investment of artificial intelligence as S&P grows more concentrated

Torstein Slikk said on Friday that the S&P 500 became “very focused.” Blog post. With a group of technology shares at the top at the beginning in the collapse, it pours cold water on the ongoing aggressive investment in the index and in the wonderful seven.

“The idea of the textbook that the S&P 500 gives you a variety of risks is no longer just the case,” luck. “You are very focused and focus on a small set of names, especially in technology, which constitutes a large share of total risk.”

Top 10 companies in S&P 500 arrive now 40 % of the index’s market value– More than 30 % of it from Mag Seven – which has become the market wealth increasingly dependent on the investor optimism about artificial intelligence. The AI’s AI Rally at Alphabet only assisted the CEO of Mint Sundar Pichai BillionaireFor example, but the father’s parents Profit The S& P 500 gave his fourth consecutive record closed on Thursday.

But like the artificial intelligence bubble Growth enlarges From the IT bubble a quarter of a century ago, as SLUNON I have noticed before, the severe noise around technology risk creates broader economic consequences than the Dotcom crisis. SlØk said: To protect individual individual investments, it’s time to reconsider pouring money in Mag Seven.

“One should offer some exposure to the S&P 500, and it must definitely have some exposure to Amnesty International,” said SlØ. “But it is very clear that (because of) the extreme market focus and focus on this story, this is the time to have a conversation, what are the things I should do with me?”

It becomes six wonderful seven, and it becomes five

Fears related to the increasing repercussions of the artificial intelligence bubble coincide with the detection of the wonderful seven shares.

“We have started talking about” great Six “, perhaps only five.” “This also tells you only that the wonderful seven are seven different companies that have very different businesses.”

Fame in 2023 by Bank of America Analyst Michael Hartnett, the “wonderful” seven term, acknowledged a group of companies Both in their goal From pushing towards the future of artificial intelligence, but these seven companies, which were once in Lockstep, are ever diverged in their success levels and investment areas.

appleFor example, he has I left the competitors Love Microsoft and Dead In developing artificial intelligence products and services. With its shares drop around 12 % so far, some market monitors have CEO Tim Cook called for step downAlthough the Cook price is strengthened at the stock price by about 1500 % over the past decade.

Timing Meanwhile, he failed to fulfill the promises of independent leadership, and it lasted this week Series of sales And a disappointing profits. Tesla’s share decreased about 15 % in 2025 with the continued test of investor confidence in the CEO of Elon Musk.

Nafidia This month has become the first company circulating publicly with a Evaluation of more than 4 trillion dollars The price of its share has increased by about 1,460 % over the past five years. The company is expected to witness a strong growth in sales, although competitive pressure increases.

Before profit reports next week on Meta, Apple and Microsoft, analysts continue to check the price of these companies, and evaluate whether there are other options in the technology sector worth buying.

“Artificial intelligence will continue to have a great impact on all our lives,” Släk wrote in his blog post. “But the question remains whether the seven wonderful prices are priced properly, and if the best investment of Amnesty International over the five years to the next ten years.”