According to Lo Toni, founder and managing partner of Plexo Capital, artificial intelligence technologies are categorizing the Magnificent Seven companies into several groups rather than promoting them as a single trading unit. In an interview with CNBC, Toni noted that the conditions have changed: now the defining factors are control over infrastructure and the ability to generate profit.
He identified several groups within the Magnificent Seven. Google, Microsoft, and Amazon belong to the hyperscalers, who still need to prove that their investments in AI are paying off. Meta and Apple use AI to enhance their existing businesses – advertising and hardware. Tesla is turning AI into physical products and services, which comes with its own regulatory and profitability challenges. Nvidia stands out by making profits while its clients prove the economic viability of AI; this position is now extending to software as well – on September 3, the company agreed to acquire the open AI platform Hugging Face for approximately $12.9 billion.
Toni named Google as his preferred company among the Magnificent Seven, noting that it owns its own data centers and customized chips, as well as monetizes AI through search, YouTube, cloud services, and its self-driving car division Waymo. Over the past 12 months, Google’s stock has risen by about 42%, with Wall Street's consensus target suggesting another 25% growth potential from the current level. Not all stocks in the Magnificent Seven will move in sync as AI changes their economics: some still need to prove that expenses convert into profits, while others, according to Toni, are already benefiting.