Technology giants are still ruling the global stock markets, but analysts are warning that their rapid growth might start to taper off.
They’re encouraging investors to look beyond the Big Tech giants and explore sectors that are beginning to harness the transformative potential of artificial intelligence (AI).
Research from Across Private Investments highlights that the so-called “Magnificent 7”—Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia, and Tesla—are still the powerhouse behind the equity market. Last year, their combined earnings surged by 40%, and they’re expected to grow another 18% this year, which is a significant leap compared to the roughly 6% average seen in other industries. However, projections indicate that by 2025, profit growth for the Magnificent 7 will slow to 15%, while the rest of the market might pick up speed to 13%.
AI’s Ripple Effect Across the Economy
Analysts point out that these tech leaders are laying the groundwork for AI integration by providing the computing power, platforms, and data infrastructure that allow artificial intelligence to expand throughout the economy.
As a result, industries like healthcare, manufacturing, and logistics are poised for notable profit growth in the coming years, potentially narrowing the earnings gap with tech as soon as next year.
“AI is no longer just a tech story—it’s driving a new industrial revolution,” said Dominik Hapl, an analyst at Across Private Investments. “With the infrastructure and software created by the Magnificent 7, artificial intelligence is set to increasingly influence traditional industries. For investors, this opens up a chance to diversify into undervalued sectors that could see significant growth as AI adoption takes off.”
