The dominance of the so-called Magnificent Seven US technology companies is likely to be challenged as competition in artificial intelligence intensifies, according to one of London’s largest technology investors, raising questions about whether the elite group can maintain its commanding lead in the years ahead.
Speaking in comments reported by the Times UK, Ben Rogoff of Polar Capital Technology Trust said the natural monopoly-like positions enjoyed by companies such as Microsoft, Nvidia and Alphabet could come under pressure as AI becomes more disruptive and capital pours into the sector. Rogoff, whose fund manages about £5.8 billion in assets, said the rapid evolution of large language models and the surge in investment could reshape the competitive landscape.
He argued that if there was ever a moment when the dominance of the biggest tech firms might be tested, it would be during a period of profound technological disruption driven by AI. As models become increasingly capable, Rogoff said, they could undermine not only companies on the fringes of the tech sector but also challenge established incumbents at its core.
The valuations of the largest US technology companies have soared on expectations that they will reap the rewards of a boom in AI demand. The biggest players, often referred to as hyperscalers, including Alphabet, Meta, Microsoft and Amazon, are collectively spending hundreds of billions of dollars each year on AI infrastructure, from data centres and power generation to advanced chips. Rogoff warned that the financial cost of staying competitive in the AI race continues to rise sharply.
According to the Times UK, Rogoff also expects performance within the Magnificent Seven to diverge further, as some firms extend their lead in AI while others struggle to keep pace. He said the AI investment story is becoming more complex, rejecting the widely held view that progress in artificial intelligence is synonymous with the success of the Magnificent Seven alone.
Polar Capital Technology Trust, which joined the FTSE 100 in February, currently holds Nvidia as its largest investment, accounting for about 10% of its net asset value, followed by Alphabet at 8.8%. Despite this exposure, the trust is underweight the Magnificent Seven relative to its benchmark, reflecting Rogoff’s view that opportunities in AI extend beyond the largest names.
The trust has also exited its position in Oracle, preferring companies that fund capital expenditure through equity rather than debt. Rogoff, who describes himself as an “AI maximalist,” dismissed concerns that a bubble is forming in AI-related stocks, despite sharply rising valuations. He said growing sophistication in AI models would continue to drive heavy spending on infrastructure.
Rogoff said the trust’s strong performance this year was partly due to market expectations for AI spending having been too pessimistic. He added that forecasts could remain overly conservative looking toward 2026 and beyond, arguing that waiting for AI to become cheaper before investing has not paid off in recent years and may not do so in the near future.
