The CEO of computer-chip maker Nvidia recently told CBS News that there was a “0% chance” that
AI will destroy the world by 2030.
Arguably, the comment wasn’t as reassuring as Jensen Huang – the man in charge of the tech giant –
had hoped.
At the time of writing, Nvidia stock was languishing at its lowest levels in a decade, according to
Yahoo Finance. The same outlet confirms that monthly mentions of the “Magnificent Seven” in a
leading market-tracking system have fallen by approximately 70% since the start of 2024.
This all feeds into a wider conversation about the meteoric rise of AI and whether the sector is a
bubble set to burst.
More importantly, you might be wondering what the highs and lows of these firms mean for the
wider global economy and for your personal finances.
Keep reading to find out.
The Magnificent Seven is “dead” as a market construct
We’ve written about the Magnificent Seven and the AI bubble before:
• 2 key lessons US tech’s Magnificent Seven can teach you about diversification
• Is the AI bubble about to burst, and does it matter?
These articles explored the emergence of the term Magnificent Seven (which includes household
names like Amazon, Apple, Microsoft, Meta, and Tesla) in 2023 and their dominance in the US stock
market.
This dominance led to fears of a lack of diversification – the worry that a fall in tech stocks could
disproportionately impact portfolios. Then, with the rise of AI, came concerns that tech stocks were
overpriced and that the bubble must, at some point, burst.
In July, market strategists at the multinational firm Citigroup confirmed that the Magnificent Seven is
“dead” as a market construct (as reported by Morningstar).
In the fast-moving world of AI, the different approaches and positions of individual firms within the
Magnificent Seven mean they no longer operate as one. There are also new companies in this space
vying to be part of a Magnificent Eight or even a Magnificent 10.
Then there’s the firms’ actual stock performance.
Recent downturns haven’t been helped by concerns that certain pockets within the tech sector are
overvalued, from which fears of an AI bubble ultimately stem.
And then there are the comments of Nvidia’s Huang, a rebuttal to a former researcher at AI lab
Anthropic, Jacob Coxon, who stated that AI could cause human extinction by the end of the decade.
Former colleague Evan Hubinger put the chances at “greater than 10%”.
When Chinese President Xi Jinping arrived in Washington to meet Donald Trump this month
(September 2026), AI guardrails were high on the agenda.
Your plans don’t rely on AI but on patience, focus, and diversification
In terms of your long-term financial plans, your key strategies remain the same:
• Stay patient
• Stay focused
• Diversify
Your plan is designed with your long-term goals and risk profile firmly in mind. Your portfolio is
diversified to spread risk, which means you hold funds across various asset classes, sectors, and
geographical regions, specifically to protect against the potential impact of a bursting bubble.
We also review your holdings regularly to ensure your asset allocation remains fit for purpose and
aligned with your objectives.
In this way, it is hoped that falling prices in one sector will be offset by rises elsewhere, and if price
movements skew your allocation, we are able to make changes accordingly.
All you have to do is stay patient and focused on your long-term goals.
Financial news headlines can be worrying – and this is especially true of stories regarding the rise
(and potential fall) of AI – but market fluctuations are an inherent part of investing, and bubbles
have burst before.
If your long-term objectives haven’t changed, then it’s unlikely your plan will need to. At Globe IFA,
we can use our combined decades of market experience to provide reassurance and a calm voice,
helping you to remain unemotional and avoid the knee-jerk reactions that could derail your plans.
Get in touch
Whether you view AI as a fancy search engine or a potential world-ender, the technology is here to
stay. While it will continue to dominate headlines in the years ahead, it is just one sector in a global
system that fluctuates minute to minute and decade by decade.
If you want to cut out the noise and staying focused on your long-term financial plans, we can help.
Please email hello@globeifa.co.uk or call us on 020 8891 0711 to discuss how Globe IFA’s expert
financial advisors can help you manage your long-term financial plans.
Please note
This article is for general information only and does not constitute advice. The information is aimed
at retail clients only.
The value of your investments (and any income from them) can go down as well as up, and you may
not get back the full amount you invested. Past performance is not a reliable indicator of future
performance. Investments should be considered over the longer term and should fit in with your
overall attitude to risk and financial circumstances.
