This is why Daniel Newman, CEO of Futurum Group, says it may be time for a name change.
Transcript:
Caroline Woods: For so long the mag seven traded as one. And we certainly haven’t seen that this year. Do you think it’s time for the Mag Seven to be broken out up broken up.
Daniel Newman: We may need a new name for it, and we certainly see them. Some divergence in the companies and just what they do, how they function and why they’re going to be important. The AI era has sort of created a new ranking and a new order. Nvidia just stands in a class of its own right now. The only other company I think that has a moat as big as NVIDIA is TSMC. But TSMC is a little more boring. People get a little confused about the foundry business, but basically no chips are made right now of any consequence without TSMC. So that’s a really interesting one. But Yeah, right below it. We love meta. Meta is one of the few companies that actually is really putting AI to work. So their ads business and how they use AI to make money, their investments in superintelligence. Zuck is making these 100 million plus dollar single employee bets. By the way, Zuck, I’m in. Call me up on single employees to basically drive the company to superintelligence. But I think there’s trillions of dollars of market cap at stake. So he’s basically looking at this like a professional sports franchise bringing the best talent win the World Series. Are we the Yankees. Are we Manchester United. Whatever sport analogy you like, we’ll buy the best players. We’ll try to win that way. That’s going to be the best. Can he make that work. And then right behind it, we see that kind of Microsoft and Google sitting there right in the middle with Amazon. So those big hyperscalers they’re playing on both sides. They have consumer things e-commerce. They have search. They have devices and productivity tools that everybody uses every day solid. But like I said, the two ends are diverging very quickly within the max.
Caroline Woods: OK so just quickly, if it’s not going to be called Magnificent, what should we call it?
Daniel Newman: Fantastic I don’t know, I don’t I create, I creative, I am not.
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