Have the "Seven Giants" of the US stock market risen to their peak?
The market capitalization of the "Seven Giants" in the U.S. stock market accounts for a historic high of 32% of the S&P 500 index, sparking intense debate about whether it has risen to its peak. Bank of America strategist Michael Hartnett proposed a contrarian view, suggesting that while the concentration of tech giants is high, it is not unprecedented. If AI is regarded as a technological revolution on par with railroads, the rise led by tech giants may still have room to grow
The market capitalization of the "Seven Giants" in the U.S. stock market recently reached a historical high of 32% of the S&P 500 index, sparking heated debates about whether their prices have peaked.
In response, Bank of America strategist Michael Hartnett proposed a contrarian view: why can't the "Seven Giants" reach the level of railroad stocks from back in the day? As a disruptive technology of the late 19th century, railroad stocks accounted for 63% of the total market capitalization of U.S. stocks in 1881, making it the most dominant innovative sector at the time.
Compared to history, while the concentration of current tech giants is high, it is not unprecedented. From a historical cycle perspective, if AI is viewed as a technology revolution on par with railroads, then this round of gains led by tech giants may still have room to grow.
