Mag Seven

“On Thursday, it was the largest aggregate decline in Mag-seven in five years, I believe I saw it was.”

“10 trillion in software service internet, 20 trillion in Mag-Seven, 30 trillion in non-Mag-Seven compute chips hardware. That's a, I don't think people would realize that we are that compute hardware centric now. 10, 20, 30. Before AI, BCE era, it was probably…”

“In the last seven years, we've added one trillion of revenue to the Mag-Seven in the last seven years, ok? To get to a trillion, to get to the first trillion Of, you know, took over 20 years, and the last seven we added another trillion, and that added 17 tril…”

“If you exclude the data center supply chain stuff right now, there are very few companies that are growing fast that are available for people to buy in the public markets. You know, the mag seven are all growing sub 30% at this point. You know all the software…”

“So the biggest of the Mag-Seven was Meta in 2012, IPO'd around a hundred billion dollars. All of the predecessors had IPO'd in the nineties, you know, in the 10 to fifty billion dollar range, which for that time was very large.”

“I don't think that there's this concern in my mind of, oh, that means you got to sell mag seven or this and that, because, you know, the S and P is 60 or 70 trillion dollars of market cap. We're talking about one trillion dollar, three one trillion dollar comp…”

“And I gotta say by and large, and it's anecdotal, but there are enough of them. They are very, very excited about these companies and they're selling down their mag seven positions a little bit to, or preparing to like go all in on these companies.”

“So the mag seven, the seven biggest tech companies in America, they now comprise 32% of the S&P 500 market cap, and they drove 42% of total returns in 2025.”

“I pulled up a mag seven employee counts and every single company in the mag seven has increased headcount over that same period that we just showed.”

“Is that a bubble in price? Probably. It's probably not a bubble in the underlying economic activity of the businesses. But Mag seven went from these dominant cash flow machines to taking all the cash flow and spending it in something that has an unknown ROI.”

“Mag seven minus Tesla have reasonable valuations, and the hyperscalers have more demand than they can handle.”

“I think that when you look at, for example, the performance of listed companies, so the FTSE two 50, which is primarily like actually UK operating companies, has performed kind of catastrophically bad over the kind of past 15 years compared to the S&P 500. Lik…”

“I think there's reasonable arguments that AI could be a sustaining innovation because the raw ingredients of kind of data, you know, the capital to buy compute and distribution, which is what you need. All of the big you know, today's biggest tech companies ha…”

“But what instead I know is I'm looking at the underlying companies, and except for some of the Mag-Seven that are growing their earnings, the smaller and mid-caps are not.”

“And so if you look at the earnings expectations of the sloppy four 93 for this year is virtually no growth. But if you look at the growth of the mag seven, it continues to go higher.”

“And so I think you have a similar dynamic here where the mag seven are just a humongous portion of the market. Now these companies are great. They have cash machines, like they're going to do fine, but I do think we should be concerned that these companies rep…”

“If you're not a member of the mag seven, You're not going to be able to get anywhere near the valuation. And so what do you do to stay there? You spend. And it's worth it because the stock value stays up because you're in the top seven or 10.”

“When you look at the overall value created in venture compared to the Mag seven, it's noise.”

“We've got mag sevens using us with thousands of licenses that are paid for where they're aggregating 200 product managers, five customer calls every week per product manager, and they've built this silo or this kind of storage of intelligence of customer inter…”

“So, the Mag-Seven has actually underperformed this year, but we have AI power, we have AI related software, we have AI semis that are up on the year.”

“If you look at the Mag-seven over the last three or four years, they've grown over 20% compounded, but the number of employees, their OpEx, is growing at two percent.”

“I think Gen AI or the largest beneficiary of AI is, is going to be the average company deploying it and not necessarily the mag seven the ones who are building it. I think that is probably contrarian In this, at least if I look at the stock market, we will see…”

“Specifically you're seeing the Mag seven compressed towards the rest of the S and P 500.”

“And what we've seen is that the rise and dominance of mag seven has led to a real bifurcation of markets and opportunity sets. The rise of mag seven is really distorted bottoms up investment outcomes and decision making.”

“What's so insidious, I think about what is potentially going on and having lived through this in the late nineties with.com is the concentration of that kind of performance. And so few securities, it really will ignite fear of missing out or fear of lagging. A…”

“At least in the initial stages of AI, where your data and distribution are so important, I think the mag seven will continue to do quite well.”

“About 11 to 12% of the dollars in, in, in, in large cap tech, think mag seven are quote unquote active dollars. So think long only in hedge funds. Yeah. So if you would have looked at this in 2010, that would have been above 20%.”