Apollo Sounds the Alarm: AI Profits Are a No-Show Outside Tech, and AI-Heavy ETFs Could Pay the Price

John Seetoo

Wed, July 8, 2026 astatine 10:20 AM CDT 8 min read

Quick Read

• Apollo's Torsten Slok recovered AI profits person not materialized extracurricular tech, with real-world implementation costs moving up to 300% much than replacing quality workers.

• Amazon, Microsoft, Meta, and Alphabet are committing astir $750 cardinal successful 2026 AI cap-ex, portion B2B clients progressively find adoption costs unjustifiable.

• MAGS holds lone Magnificent 7 stocks with zero diversification, leaving it afloat exposed if AI nett timelines agelong from months to 5 years.

• Don't wait: the expert who called NVIDIA successful 2010 conscionable revealed his apical 10 AI stocks. See the afloat database FREE now.

Artificial Intelligence (AI) is astir apt the hottest fiscal assemblage close now, based connected anticipation and anticipation. The expectations are implicit its far-reaching productivity boosting capabilities to make immense profits successful practically each concern assemblage that uses computers, and the anticipation is implicit AI's commercialized realization timing.

The AI fervor is 1 of the biggest reasons wherefore the "Magnificent 7" stocks: Apple, Amazon, Alphabet/Google, Meta Platforms/Facebook, Microsoft, Nvidia and Tesla - person soared to trillions successful nett superior valuation successful the past fewer years. However, portion ChatGPT and Grok are utilizing AI for accusation searches, existent commercialization with measurable productivity gains crossed the committee are inactive a distant people - and a caller investigation from Apollo's Torsten Slok indicates that the people whitethorn beryllium adjacent further distant than antecedently predicted.  As such, immoderate tech ETFs with a dense weighting towards companies with immense AI budgets whitethorn find themselves faltering. In particular, holders of the Roundhill Magnificent Seven ETF (CBOE: MAGS) and the iShares Expanded Tech-Software Sector ETF (CBOE: IGV) mightiness privation to beryllium other vigilant astir immoderate forthcoming quality regarding AI setbacks oregon disappointments. 

How Much Are The Big AI Players Invested In the Sector?

Amongst the Magnificent 7 AI cap-ex budgets for 2026, Jeff Bezos and Amazon leads the battalion with a $275 cardinal cumulative committment.

Don't wait: the expert who called NVIDIA successful 2010 conscionable revealed his apical 10 AI stocks. See the afloat database FREE now.

While the maxim, "You person to walk wealth to marque money" has been existent for centuries, a fig of tech companies' commitments to cap-ex connected AI has fixed galore shareholders sleepless nights, and thing indicating that AI whitethorn not beryllium rather the beatified grail being promoted could effect successful a sell-off. To springiness an thought of however overmuch the largest AI investments person grown to date:

Amazon: In summation to $200 cardinal for 2026 cap-ex for AWS unreality AI, it besides has pledged $25 cardinal for Anthropic and $50 cardinal for national authorities AI infrastructure.