"While their massive market caps (the average name is now measured in trillions, rather than billions) might leave less in the way of appreciation relative to the much-smaller up-and-comers (think the companies with market caps south of $100-150 billion), it's a mistake to think that the titans can't continue to do well as the we move further into the AI age. In many ways, the mega-cap tech titans have made the most of their economies of scale."
"The Magnificent Seven will do well, but I do think that some of the emerging names are worth keeping on your radar if you're a younger investor who's willing to take on more risk for a shot at being on the right side of a historic mover. Of course, it's hard to tell which non-Mag Seven innovators will rise to become that next big thing."
Mega-cap tech giants remain strong and can continue to benefit from economies of scale and AI-driven growth. Massive market capitalizations may limit upside compared with smaller up-and-comers, but titans can still perform well as AI adoption advances. Anti-trust concerns could arise, yet they may be less pronounced given a pro-tech administration and strategic interest in maintaining U.S. leadership over China in AI. Younger investors willing to accept greater risk may target emerging tech names for potential historic gains. Excess volatility among emerging AI-related stocks could create opportunistic dip-buying windows to complement a Magnificent Seven-heavy portfolio.
Read at 24/7 Wall St.
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