GE Vernova has been highly volatile, reflecting the difficulties industrial companies face in scaling AI infrastructure due to physical limitations.
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Why the Magnificent Seven Are Dominating Markets Again
The Magnificent Seven stocks are outperforming the market again, driven by strong earnings and profitable AI capital expenditures. While Nvidia is seen as a catalyst, Microsoft and Meta are also contributing to the resurgence. Valuations are considered justifiable, with some stocks becoming relatively cheaper as they rise due to strong fundamentals and guidance.
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Caterpillar is trading well off its highs, illustrating the challenges physical industrial companies face in building AI infrastructure compared to software giants.
Apple is mentioned as being less than a week away from a big event, suggesting potential upcoming news or product launches.
The Magnificent Seven's recent outperformance is compared against the S&P 500, indicating a resurgence in big tech's market dominance.
Alphabet's web services are growing at 80%, contributing to the fundamental earnings-based reasons for the Magnificent Seven's performance.
Amazon's CEO is cited for stating that new data centers can be recouped in less than three years, highlighting the profitability of AI-related capital expenditures within the Magnificent Seven.
Microsoft is playing a significant role in the Magnificent Seven's resurgence, with its stock showing strong performance after a period of 'squirrely' price action, emblematic of the comeback.
Nvidia's strong earnings and guidance are seen as the catalyst for the Magnificent Seven's resurgence, with the stock's performance indicating continued AI capex and profitability.
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NVDAbuy opened Sep 5, 2026
-5.39%