The Mag 7 is turning into Nvidia and the Mag 6

This is why Daniel Newman, CEO of Futurum Group, says it may be time to break up the Mag 7.

Transcript

00:00For so long, the MAG7 traded as one, and we certainly haven't seen that this year.

00:04Do you think it's time for the MAG7 to be broken up?

00:08We may need a new name for it, and we certainly see some divergence in the companies

00:15and just what they do, how they function, and why they're going to be important.

00:18The AI era has sort of created a new ranking and a new order.

00:22NVIDIA just stands in a class of its own right now.

00:24The only other company I think that has a moat as big as NVIDIA is TSMC.

00:27But TSMC is a little more boring.

00:29People get a little confused about the foundry business,

00:32but basically no chips are made right now of any consequence without TSMCs.

00:36That's a really interesting one.

00:38But yeah, right below it, we love Meta.

00:40Meta is one of the few companies that actually is really putting AI to work.

00:44So their ads business and how they use AI to make money,

00:48their investments in superintelligence.

00:50Zuck is making these $100 million plus single employee bets.

00:53By the way, Zuck, I'm in. Call me up.

00:54On single employees to basically drive the company to superintelligence.

00:59But I think there's trillions of dollars of market cap at stake.

01:02So he's basically looking at this like a professional sports franchise.

01:05Bring in the best talent, win the World Series.

01:07Are we the Yankees?

01:08Are we Manchester United?

01:09Whatever sport analogy you like.

01:11We'll buy the best players.

01:12We'll try to win that way.

01:13That's going to be the best.

01:14Can he make that work?

01:15And then right behind it, you know, we see that kind of Microsoft and Google

01:20sitting there right in the middle with Amazon.

01:22So the big hyperscalers, they're playing on both sides.

01:25They have consumer things, e-commerce, they have search.

01:27They have devices and productivity tools that everybody uses every day.

01:32Solid, but like I said, the two ends are diverging very quickly within the Meg Center.

01:37Okay, so just quickly, if it's not going to be called Magnificent, what should we call it?

01:41Fantastic.

01:42I don't know.

01:43I don't know that.

01:45I don't know.