“The “Magnificent 7″ stocks — NVIDIA, Microsoft, Alphabet (Google), Apple, Meta, Tesla and Amazon — now make up around 35% of the value of the US stock market, and NVIDIA’s market value makes up about 19% of the Magnificent 7. The S&P 500 has never been more concentrated in a single stock than it is today.”
“If Nvidia’s revenue growth should weaken, the other six stocks are in big trouble. The difference between the IT bubble in the 1990s and the AI bubble today is that the top 10 companies in the S&P 500 today are more overvalued than they were in the 1990s. By the end of this year, Meta, Amazon, Microsoft, Google and Tesla will have spent over $560 billion in capital expenditures on AI in the last two years, but they have only accrued revenues of about $35 billion.”
~ Quote from Michael Roberts in The Next Recession
Read in The Next Recession
