Mag 7 trade splinters as AI winners pull away heading into 2026
2025-12-29_13-38 • 1m 49s
Frank Holland (Anchor)
00:00.600
All
right,
it's
been
another
solid
year
for
the
Mag
7
collectively.
The
CNBC
index
that
tracks
those
mega
cap
names
up
more
than
25%.
But
as
McKenzie
Segalus
reports,
there's
a
grungy
disparity
between
the
halves
and
the
have
nots
within
the
Mag
7.
Mackenzie Sigalos (Business News Reporter)
00:14.360
The
Mag
7
trade
has
splintered
this
year
and
2026
could
widen
that
gap
even
further.
We're
looking
at
a
roughly
60
percentage
point
spread
between
the
best
and
worst
performers.
Alphabet
up
65%,
Amazon
just
5.5%.
With
the
market
now
differentiating
based
on
who
can
actually
Mackenzie Sigalos (Business News Reporter)
00:30.920
convert
AI
spend
into
margin
and
revenue.
Alphabet
stands
out
because
it
owns
the
full
stack.
It's
in-house
TPU
chips
cut
reliance
on
Nvidia
and
give
it
a
structural
cost
advantage.
Google
Cloud
grew
34%
with
operating
margins
expanding
to
nearly
24%.
Contrast
that
with
Meta.
It
Mackenzie Sigalos (Business News Reporter)
00:48.120
raised
its
2026
CapEx
guide
and
its
stock
had
its
worst
day
in
three
years
as
investors
question
the
payoff
timeline.
Amazon,
that's
been
a
laggard
as
well.
AWS
growth
has
trailed
Google
Cloud
and
Now,
yes,
it
is
coming
off
a
higher
base,
but
the
heavy
AI
spending
still
isn't
Mackenzie Sigalos (Business News Reporter)
01:04.600
translating
into
share
gains.
And
here's
the
key.
If
model
quality
keeps
converging,
which
it
is,
then
distribution
and
monetization
start
to
matter
more
than
benchmark
bragging
rights.
That
means
that
the
laggard
risk
sits
squarely
with
heavy
spenders
who
can't
show
clear
Mackenzie Sigalos (Business News Reporter)
01:18.920
returns.
It
also
opens
the
door
for
names
like
Apple
up
around
12%
so
far
this
year.
It's
largely
sat
out
the
AI
infrastructure
arms
race.
And
if
it
can
capture
value
through
distribution
without
out
the
massive
training
costs,
that's
a
different
kind
of
upside
story.
Frank,
Mackenzie Sigalos (Business News Reporter)
01:34.240
sending
it
back
to
you.
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