With the Magnificent Seven i.e. Apple, Alphabet, Amazon, Meta, Microsoft, Nvidia and Tesla, accounting for 34 per cent of the S&P 500’s value at the end of June 2026, diversification is becoming harder to find.
Chad Padowitz from Talaria Capital believes that concentration risks are being aimlified by AI, 'Outside of sovereign bonds, a large majority of this concentration is linked to AI, be they hyperscalers or the picks and shovel companies that are benefiting from the tremendous growth and expenditure on building out the AI infrastructure.'
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