$NVIDIA(NVDA.US)The recent performance of the Magnificent 7 has been a good reminder that there may be no permanent moat in a market driven by AI investment. Companies once viewed as untouchable can quickly fall out of favor if they aren’t seen as the biggest beneficiaries of the current capex cycle.

Right now, the market isn‘t rewarding stability or diversification. It’s rewarding whoever captures the largest share of AI infrastructure spending. That has created a clear winner-takes-most environment, where capital keeps concentrating in a handful of names while even high-quality companies struggle to keep pace.

The lesson isn‘t that moats no longer exist, but that in this phase of the cycle, the market cares far more about who is winning today’s AI race than who built yesterday‘s fortress.

@Bridge Buzz SG