AI Stock Split: Nvidia, Google Lead as 'Magnificent Seven' Diverge; Indian Investors Alert!

• The initial AI-led rally, which saw the 'Magnificent Seven' (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, Tesla) surge together, is now ending.
• Only Alphabet and Nvidia outperformed the S&P 500 in 2025, signaling a shift from AI exposure to actual AI monetization.
• Nvidia's success stems from its direct tie to AI demand, transitioning to an indispensable AI infrastructure provider with 90% revenue from data center hardware.
• Other tech giants like Apple, Meta, Amazon, and Tesla face challenges in AI monetization due to high capital expenditures, delayed returns, or indirect revenue streams.
• Indian investors, who largely missed the initial AI boom, must now focus on execution and tangible revenue/margin expansion from AI, as sector-level optimism is no longer sufficient.

Why It Matters: AI stock market is splitting; investors now demand proof of monetization, not just AI exposure.