FT News Briefing Predicting 2026: Will the Magnificent 7 tech stocks continue to diverge?
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Jan 2, 2026 
Gillian Tett, a Financial Times columnist and economic analyst, discusses the trajectory of the Magnificent 7 tech stocks. She explains her previous predictions about their performance and analyzes the mixed outcomes of 2025. Gillian attributes upcoming divergences in 2026 to factors like Alphabet's rebound and the unique paths of individual companies. Cautioning against overreliance on AI-driven trends, she outlines risks such as rising rates and political pushback, while also suggesting potential catalysts for a unified recovery.
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Concentration Made A Reversal Likely
- The Magnificent Seven's dominance reached historically extreme concentration levels that made a reversal likely.
- Gillian Tett argued hype about AI's immediate earnings boost was overdone and timelines are uncertain.
Diverging Yearly Returns
- In 2025 Alphabet rose more than 60% and NVIDIA gained over 30%, while Amazon lagged in single digits.
- Tett used these outcomes as examples of divergence within the Magnificent Seven.
AI Boom Will Produce Selective Winners
- Investors are becoming more discerning about which AI bets will pay off rather than assuming all big tech will win.
- Tett warned history shows not all companies in a technological boom become long-term winners.