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AI trade faces scrutiny after Magnificent Seven selloff wipes $797bn

The selloff came as nearly $800bn was erased from the combined market value of the so called Magnificent Seven in one day.

Reported · Written up by our desk · Hedge Funds

Hedgeweek reports that hedge funds and other institutional investors are reassessing whether the artificial intelligence investment boom is sustainable after a sharp selloff in technology.

According to a report cited by Hedgeweek, the pullback wiped nearly $800bn from the combined market value of the so called Magnificent Seven in a single day, prompting investors to review how durable the AI trade may be.

Bloomberg was cited in the coverage as attributing the reassessment to concerns about the implications of the abrupt market move for the broader AI-driven valuation outlook.

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