The Magnificent Seven AI-exposed mega-caps (Apple, Microsoft, Nvidia, Amazon, Meta, Alphabet, and Tesla) now account for 58% of the S&P 500’s risk profile despite representing only about 35% of its market capitalization, according to an analysis by HDFC TRU. This concentration has doubled since early 2020 when it stood at 18.5%. Technology sectors together represent 43% of the index, a level described as the highest in modern financial history. During the 2022 market drawdown, the Mag-7 fell roughly 45%, compared to 20% for the cap-weighted S&P 500. US hyperscalers are projected to spend approximately $700 billion on AI infrastructure in 2026, up from $380 billion in 2025.
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