Dear Reader, Big tech is rapidly evolving... Gone are the days when investors could buy into the Magnificent Seven at any valuation and watch them soar higher and higher. Take Nvidia (NVDA), for example. NVDA led most of last year's AI-driven rally. But it peaked on October 29 and has struggled to regain momentum. It recently closed 12% off its all-time high. Other Mag Seven stocks are faring worse... While Alphabet continues its run (recently up 135% since April 2025), Meta Platforms, Apple, Amazon, Microsoft, and Tesla are either range-bound or starting to trend down. Microsoft recently declined 12% ... one of the largest, single-day drops in company history. The reason for this is simple: Investors now want to see which companies are converting their vast AI spending into profits. And that's the problem... MIT recently found that 95% of organizations have received no return on their AI investments so far. Yet these firms are still planning to pump $5.2 trillion into new AI capital expenditure by 2030. The only problem? AI revenue stands at just $20 billion. So these firms would need a 100-fold increase just to break even. In other words, they need a miracle. The market could soon punish the Magnificent Seven and these other larger-cap stocks. Click here to view my recent interview, where I detail this rapidly developing situation. Regards, Larry Benedict
Founder, The Opportunistic Trader | 
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