Big Tech AI spending panic hits Mag 7 — ride the chip & power supplier rotation
Big tech companies like Apple and Microsoft are getting hammered over AI spending doubts, but the companies that actually supply the AI chips and physical infrastructure are rallying. Wall Street is shifting its bets away from the AI software buyers and toward the hardware and power suppliers.
Idea
The Magnificent Seven tech giants just lost $2.3 trillion in market value because investors are questioning when their massive AI investments will actually pay off. However, investors aren't abandoning AI entirely—they are simply rotating their money downstream. Chip suppliers like Micron, Intel, and AMD added a record $2 trillion in value last quarter. This trend is expanding into power infrastructure, evidenced by Bloom Energy expanding its AI power partnership to $25 billion. Buying the hardware and energy companies that enable AI, rather than the mega-cap tech companies paying for it, captures the growth while avoiding the immediate spending panic.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| AMD | LONG | +0.00% ✗ | +0.00% ✗ | — |
Price change since publication · updated Jul 11