deVere Group CEO: Magnificent Seven Stocks to Become Magnificent Three Within 5 Years

The era of treating the “Magnificent Seven” as a single market trade is coming to an end, according to Nigel Green, CEO and founder of deVere Group, who predicted in a recent note that within five years, only three of today’s mega-cap technology companies will retain the premium valuations associated with being viewed as the dominant winners of the AI revolution.

“The Magnificent Seven will become the Magnificent Three,” Green said, adding that the remaining companies “will remain extraordinary, highly profitable businesses, but investors will increasingly view them as consumers of AI infrastructure rather than the primary beneficiaries of it.”

Green’s comments follow a global sell-off in technology stocks triggered by Apple’s decision to raise prices on MacBooks and iPads, citing rising memory and storage costs driven by AI data center demand.

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Apple shares fell more than 6% after the announcement.

According to deVere Group, the market has wrongly assumed all seven companies, Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta and Tesla, benefit equally from artificial intelligence.

Green expects “the winners of the next decade will increasingly be the companies selling the infrastructure, memory, chips, energy and computing capacity that AI requires.”

deVere Group cited industry estimates suggesting memory and storage costs have quadrupled over the past three quarters, with manufacturers reporting record revenues and margins.

Green stressed his prediction does not signal a decline for the broader group, but rather a market shift toward distinguishing companies that “extract economic rents from the AI ecosystem” from those that “consume those rents.”