The Mag 7 Trade Is Ending - The AI Cash-Flow Divorce Is Just Beginning

The Mag 7 stocks are no longer trading as a unified basket as investors shift focus from growth potential to cash flow realities. Microsoft, Amazon, Alphabet, and Meta are spending $700 billion annually on AI infrastructure without clear return timelines, forcing a market separation between capital-intensive AI builders and beneficiaries like chip suppliers. The market is now demanding proof of cash conversion and return on invested capital rather than just AI opportunity narratives.