Goldman Sachs has warned that investors are reducing their stakes in the so‑called "Magnificent Seven" tech giants. Instead, they are favoring companies that benefit from AI growth, especially semiconductor manufacturers and hyperscalers that shoulder the heavy costs of AI development.
The bank argues that the market currently rewards firms that generate profits from AI investments, while it remains cautious toward those that bear the bulk of the associated costs.
According to Goldman Sachs, unless hyperscalers can demonstrate stronger profitability growth, this cautious stance toward large tech firms is likely to continue.