AI’s Massive Spending Sparks Investor Warnings: Tech’s Magnificent Seven Could Be Overwhelmed, but Google Holds a Winning Trump Card

Glonghui, February 11th｜The "Tech Magnificent Seven"—Apple, Microsoft, Amazon, Alphabet, Meta, Tesla, and Nvidia—are seeing continuously increasing capital expenditures, signaling heightened risks for investors and potentially serving as a catalyst for these dominant companies to eventually underperform the broader market. This is the latest view from Hawtin, Head of Global Equities at the British fund management company Liontrust. He pointed out that the aggressive spending plans announced in recent financial reports are the primary concern for shareholders seeking reliable returns. Hawtin also noted that a key factor in the artificial intelligence race may determine the ultimate winner: proprietary data. "Ownership of data will absolutely determine who can ultimately win." He cited the strong performance of Google’s parent company Alphabet last year as an example. Hawtin stated that although Alphabet initially underperformed last year, it ultimately became the best-performing company among the "Tech Magnificent Seven," with a full-year increase of 65%, "mainly thanks to its massive proprietary data set."