The world of technology is no longer “the seven magnificent.” Now that scepter has “the Trinity of AI”

The world of cinema has some fixation with number seven. It is demonstrated by the mythical ‘The Seven Samurais‘(1954, Akira Kurosawa) which would then be adapted to the genus Western with’The magnificent seven‘(1960, John Sturges). The idea ended up moving to the business world and for a few years there has been talk of “The magnificent seven“In reference at seven most important technology companies in the world. Well, that number is no longer so relevant. It seems that we will have to change it for a three.

The four billion club. Last week Microsoft became the second company in the world to achieve a stock market capitalization of Four billion dollars. Just two weeks before Nvidia had been advanced. Both have climbed into the AI car and benefit widely from it, but there is a third leading protagonist that is still far from that milestone but that goes like a rocket.

The 10 companies with the greatest stock market capitalization today. Goal is far from the four billion, but its recent growth is spectacular. Source: CompaniesMarketcap.com

Goal. The recent ones Financial results presented by goal served to make the company redouble their commitment to this segmetno. Those responsible spoke of a much larger capex than expected that will rise to 66,000-72,000 million dollars. That, added to all movements they are doing to sign talent and creating a new superintelligence team have caused remarkable optimism among investors. Meta actions rose more than 10% after these ads, although in recent days their value – like that of their competitors – has reduced significantly.

We have gone from “the magnificent seven” … In recent years that list with the most important companies in the world (by stock market capitalization) was dominated by large technological ones. Among the first 10-15 positions were always those “seven magnificent”, namely: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. All of them remain very relevant, but the rise of AI has changed the panorama.

… to “the trinity of the AI”. Dec Mullarkey, manager at the Capital firm SLC Management, He spoke How “the Magnificent seven have compressed (and became) in the Trinity of AI.” The expectation that these companies do not stop generating remains extraordinary, and that has made investments and interest in these companies absolutely triggered.

Overvalued? The Ratio P/E (also known as Per, Price to Earnings Ratio) is a metric that evaluates whether an action is expensive or cheap in relation to the benefits of the company. A high P/E means that investors expect a high growth of benefits, and a low one may indicate that the action is undervalued. According to this metric, Tesla is very, very overvaluedwhile Google is relatively undervalued with respect to its competitors. The companies of “The Trinity of AI” are somewhat overvalued.

Graph: Xataka. Data: Companymarketcap.com

Google’s mysterious case. It is strange that in that “trinity of AI” is a goal but not Google, which at least in practice is much stronger: His family of Gemini models is more capable than those who have a goal, for example, but for now, investors do not seem completely convinced of their ability to lead that segment. The situation of Amazon and Apple It is very different: both have made their respective bets, but they are still very relegated in that AI race.

Image | Chatgpt

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