A Changing Market Leadership
For much of the past two years, the artificial intelligence investment story has been synonymous with a handful of companies. Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla — collectively known as the Magnificent Seven — now account for roughly a third of the S&P 500, and in 2025 they produced about 42% of the index's total return, as reported by Bangkok Post. Their dominance, however, may be entering a new phase.
Since its early-June peak, the group has fallen about 8%, even as roughly two-thirds of S&P 500 members and most sectors rose, according to the same report. The equal-weight version of the index, which treats every company equally, is up more than 13% year-to-date against about 8.5% for the cap-weighted version, with mid-sized and smaller companies up roughly 15% and 19%. Even within the Seven, performance has diverged sharply: in 2025, Alphabet returned around 66% while Amazon managed about 6%.
The Case for Broadening
Bangkok Post's analysis argues that this is a natural evolution of technology cycles. "The companies that build the platform lead early on. As it spreads, the value moves outward," the article notes, pointing to the businesses that supply the platform, those that apply it, and those that secure and finance it. The report identifies infrastructure as the most visible layer of opportunity, noting that AI models depend on chips, memory, networking, and data-centre capacity. It also highlights the electricity challenge: a single large AI data centre can use as much electricity as a small city, and new chips can be ordered faster than power stations and grid connections can be built.
Beyond hardware, the report points to applied AI in financial services, where AI is improving fraud detection, credit assessment, and customer service. Cybersecurity is described as a "lasting beneficiary" because AI widens the attack surface even as it sharpens the defence. The report also notes that many businesses that will matter in AI are still privately held, suggesting private markets belong in the same conversation. It concludes with what it calls "the honest objection": that broadening has been called before, and each time the Seven reasserted themselves.
An Earnings Boom Driven by AI
Moneycontrol presents a complementary picture of an earnings boom already underway. Citing a social media post by The Kobeissi Letter, the newsletter reports that the proportion of countries where earnings are expected to decline year-on-year has fallen to around 5%, its lowest level since 2021. The MSCI All-Country World Index is up 13.4% this year and is trading close to an all-time high, on course for its fourth consecutive year of double-digit gains.
The report attributes this boom squarely to AI. Nvidia has continued to exceed expectations, with demand for AI graphics processors and other chips driving "extraordinary revenue growth." The world's largest technology companies are spending unprecedented amounts on infrastructure: Microsoft, Meta and Alphabet are each projecting roughly $180 billion to $190 billion in infrastructure spending. That spending is creating a second wave of beneficiaries, including power equipment makers, construction companies, and heavy industrial suppliers. Financial institutions are also emerging as winners, with Goldman Sachs and JPMorgan Chase reporting record revenues, helped by AI-related debt issuance, IPOs, and capital-markets financing.
Cautionary Signals
The same report, however, carries warnings. The Bank for International Settlements found that in 2025 more than half of hyperscalers' revenue and almost all chipmakers' revenue could be traced to circular financing arrangements. Nvidia CEO Jensen Huang estimated that a 1-gigawatt data centre could cost $80 billion-$100 billion to build, with annual revenue of only $10 billion-$12 billion, implying 8-10 years to recover investment. The European Central Bank has warned that technological revolutions have historically produced boom-bust cycles, citing railways, electricity, radio, and the internet.
The report also notes that India has largely missed the AI-led rally that has lifted US technology and other global markets, which could become an advantage if a global reset occurs.
Perspectives
Bangkok Post (Market Evolution): The broadening of AI investment beyond the Magnificent Seven is a natural technology cycle, with value moving from platform builders to infrastructure, power, and applied AI sectors. The trend is real but not guaranteed to persist.
Moneycontrol (Earnings Boom): AI is reshaping corporate earnings globally, with second-wave beneficiaries in power, construction, and finance. While risks exist, the boom may be genuine rather than speculative.