Apollo economist: Mag 7 may not be the best AI investment as S&P 500 grows more concentrated

Torstein Slikk, chief economist in Apollo, said in a publication on Friday that the S&P 500 has become “very focused”, as the 10 best shares of 54 % of market revenues have contributed since January 2021. With a group of technology shares at the top at the beginning in collapse, it pours cold water on the ongoing aggressive investment in the index and in the wonderful seven.

“The idea of the textbook that the S&P 500 gives you a variety of risks is no longer just the case,” luck. “You are very focused and focus on a small set of names, especially in technology, which constitutes a large share of total risk.”

The 10 best companies in the S&P 500 now support 40 % of the market value of the index – more than 30 % of them from MAG Seven – which has become increasingly dependent on the market wealth on the investor optimism about artificial intelligence. AI’s AI Rally at Alphabet Sundar Pichai did not help as a billionaire, for example, but beating beatter’s Beat from Google gave S&P 500 his fourth consecutive record on Thursday.

But with the enlarged artificial intelligence bubble than the IT bubble a quarter of a century ago, as SLUNONE previously noted, the severe noise around technology risk creates broader economic consequences than the Dotcom crisis. SlØk said: To protect individual individual investments, it’s time to reconsider pouring money in Mag Seven.

“One should offer some exposure to the S&P 500, and it must definitely have some exposure to Amnesty International,” said SlØ. “But it is very clear [owing to] The market focus greatly and its focus on this story, this is the time to have a conversation about it, what are the things I should do with me? ”

It becomes six wonderful seven, and it becomes five

Fears related to the increasing repercussions of the artificial intelligence bubble coincide with the detection of the wonderful seven shares.

“We have started talking about” great Six “, perhaps only five.” “This also tells you only that the wonderful seven are seven different companies that have very different businesses.”

The term “Seven Magnification Seven” in 2023 was recognized by Bank of America analyst, “Seven Magnificent Seven” for a group of companies both in its goal of advancing the future of artificial intelligence, but these seven companies, which were simultaneously in Lockstep, started in different levels of success and investment areas.

For example, Apple failed competitors like Microsoft and Meta in developing artificial intelligence products and services. With its shares drop around 12 % so far, some market monitors called for the CEO of Tim Cook, although the stock price is about 1500 % over the past decade.

Meanwhile, Tesla failed to make promises of self -government leadership, and this week continued in its sales chain missing and disappointing profits. Tesla’s share decreased about 15 % in 2025 with the continued test of investor confidence in the CEO of Elon Musk.

This month, NVIDIA has become the first company circulating publicly, exceeding 4 trillion dollars, as its share price increased by about 1,460 % over the past five years. The company is expected to witness a strong growth in sales, although competitive pressure increases.

Before profit reports next week on Meta, Apple and Microsoft, analysts continue to check the price of these companies, and evaluate whether there are other options in the technology sector worth buying.

“Artificial intelligence will continue to have a great impact on all our lives,” Släk wrote in his blog post. “But the question remains whether the seven wonderful prices are priced properly, and if the best investment of Amnesty International over the five years to the next ten years.”