The AI Boom's Unwelcome Guest: Cheap Chinese Compute The "Magnificent Seven" stocks, a group of seven dominant companies in the S&P 500, are facing an unexpected challenge to their business model.
Bank of America strategist Michael Hartnett has identified a critical test for these companies: maintaining pricing strength despite growing concerns about cheaper Chinese compute.
This threat is not just theoretical; it's rooted in increasingly capable AI models being developed by Chinese companies at significantly lower costs.