Non Paywalled: https://archive.is/aZf2s
Earlier on March 3 Charles SCHWAB reported that M7 stocks are on course to leaving their dominance.
Shown below, the Magnificent Seven (Mag7)—Apple, Microsoft, Nvidia, Meta, Alphabet (Google), Amazon, and Tesla—have encountered notable challenges in the early months of 2025, marking a departure from their previous market dominance.
Meh7?
And today FT had a good opinion on the same with some surprising historical inputs.
The experience this year of Nvidia is instructive. The emergence of DeepSeek, the Chinese company that claimed it could run AI on less computing power, wiped $600bn off the chipmaker’s market capitalisation in January while dragging down utilities and other tech stocks.
This has been the same all times in history of tech markets. The new tech replaces the old one. If these magnificent 7 don't get the upper hand, they'll be dead in no time in front of our eyes. You can see how hard all are trying now. Everyone's saying that their tech is better but only the best one stays. However in the short run we have some respite as the markets recovered.
Nvidia’s share price then clawed back most of its losses as investors convinced themselves that cheap AI would lead to more rapid adoption and more spending.
This again can be an illusion.
But that recovery hasn’t lasted either. Nvidia shares are down around 25 per cent from their 52 week highs. Is that the sound of escaping air or just the wind?
Now over to you what you make of it.
Is this dotcom bust 2.0 or not?