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How the Magnificent 7 and tech companies are transforming the old economy

How the Magnificent 7 and tech companies are transforming the old economy In the current phase of digital transformation, we are seeing a significant redistribution of capital in the global economy. My recent cartoon (source of course ChatGPT) illustrates how the so-called "Magnificent 7" - a group of leading tech companies - and other players in the tech industry are siphoning off massive amounts of money from traditional old economy companies. This dynamic is further intensified by the increasing importance of artificial intelligence (AI) and other innovative technologies. The old economy, consisting of traditional industries such as automotive, mechanical engineering and consumer goods, is being forced to invest huge sums in digitalization and the integration of AI technologies. This need for transformation is unavoidable in order to remain competitive in the modern, technology-driven world. The tech giants play a central role in this by providing not only technological solutions, but also the necessary expertise and infrastructure. So at the moment, company profits are moving in line with share prices, so no bubble yet, or what do you think? There is also good research from Goldman Sachs that underpins this development once again with figures.

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Thank you for this take. It's an interesting view on the current wealth distribution to tech giants and the revenue consolidation in big tech.
22 Jun