AI investment is exploding: the “Magnificent Seven” of Apple, Microsoft, Google, Amazon, Meta, Tesla, and NVIDIA, are ploughing almost 7% of US GDP into AI and data centres. That’s the same scale as the US housing boom in 2006, and greater than the dot-com bubble at its peak. Today, just seven firms make up 34% of the S&P 500, the highest concentration in history. Earnings per share in these companies grew 37% last year, compared to just 6% in the rest of the index. But history warns us, RCA in the 1920s, dot-coms in the 1990s, that transformative technologies can change the world while destroying fortunes. The question now: is AI the next revolution, or the next bubble waiting to burst?

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