Good morning, investors. Late Monday, OpenAI reportedly asked the US government to ramp up its energy capacity to stay ahead in the artificial intelligence race.

It’s the latest example of how the ChatGPT creator is not only at the center of the boom, but partnered with every consequential player driving the AI economy forward, including the White House.

Today’s column is a guest post from Hardika Singh, an economic strategist at Fundstrat Global Advisors, an investment research firm.

The word “bubble” is haunting investors this fall. 

Earnings from five of the Magnificent Seven this week can help take away the eerie feeling that the current artificial intelligence hype is going to be a repeat of the dot-com bubble or the financial crisis. 

The top 10 stocks — which all of the Magnificent Seven are a part of — are about 40% of the S&P 500’s market cap.

Any missteps by those star performers could wipe out trillions of dollars in wealth. 

Meta, Microsoft and Alphabet report earnings Wednesday, followed by Amazon and Apple on Thursday.

Their job is to convince investors that it’s still early innings for a secular AI bull cycle, where worries about valuations and froth would be short-sighted. 

Expectations are high as usual. The group is estimated to report earnings growth of 24% in the third quarter from a year ago, compared to 7% for the other 493 companies. 

The overall index is expected to report profits climbed 11%.

The S&P 500’s 17% rally this year — which has shrugged off everything from trade fears to a government shutdown — partially hinges on tech giants exceeding those expectations. 

That's because those remarkable gains sound too good to be true, making it easy for some investors to latch onto the bubble narrative, especially given the billions of dollars of circular AI investments.

Yet Goldman Sachs data shows the investment in generative AI as a percent of GDP still hasn’t hit the historical peaks like it did for other transforming technologies like railroads, auto infrastructure and telecom. 

Of course, that doesn’t mean that tech earnings shouldn’t be heavily scrutinized.

The stakes run high. These businesses are shelling out billions to transform society and usher in a new era of productivity.

Tesla, for one, missed the mark last week. Revenue grew in the third quarter but it fell short of earnings expectations. Its stock is up 19% this year.

Netflix, which isn’t a part of the Magnificent Seven but a signal for the broader tech segment, posted a higher tax expense than previously expected because of an ongoing dispute with the Brazilian tax authorities.

That stock has gained 23% in 2025. 

So, the Magnificent Seven really need to come through to keep the stock market party going.

To keep this stock market running hot, the Magnificent 7 need to come through.

Hardika Singh is an economic strategist at Fundstrat Global Advisors, an investment research firm. Follow her on LinkedIn and read her disclosures here.

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📈Qualcomm stock surged more than 12%. The company announced new AI chips to rival Nvidia, and the new products will start shipping next year. Qualcomm joins Intel and AMD in trying to mount competition against Nvidia. (WSJ)

📉 Gold dropped below $4,000. Optimism for a US-China trade deal could be dampening the rally for the metal, though some Wall Street strategists remain bullish on gold as an “effective portfolio diversifier.” (Yahoo Finance)

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