Investors split on whether AI investment case can justify Magnificent Seven's cap-ex growth

Questions of a bubble mount

Fund managers and analysts have remained adamant that artificial intelligence is the core investment case driving the growth of the Magnificent Seven and other tech giants, but cracks have begun to show in their faith that this growth has stable longevity.

Over the past three years, Nvidia, the company that supplies graphics processing units (GPUs) to technology, trading and IT firms (among others) across the world, has seen its share price skyrocket by 370%, according to data from MarketWatch.  Its stock reached a height of just over $131 per share in June this year, before toppling to $104.75 in August as a combination of concerns over a potential US recession and the unwinding of the yen ‘carry trade' rocked markets, leading investors to question the long-term stability of one of the world's most valuable companies and other similar tec...