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The world’s largest technology companies have seen a staggering $2.3 trillion erased from their market value this month, in what deVere Group CEO Nigel Green is calling the start of the “Great AI Reckoning.”

Green warns that the era of the Magnificent Seven – Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia, and Tesla – as a unified market trade is coming to an end. Within five years, he predicts, investors will narrow their focus to a “Magnificent Three,” the select few that truly capture the economic upside of artificial intelligence.

As second-quarter earnings season approaches in July, Green says markets are entering a more demanding phase for investors. “The easy phase of the AI investment story is over,” he explained. “Now they want evidence. "The next few weeks matter enormously because second-quarter earnings season will force markets to confront the question they’ve spent the last year avoiding: where are the returns?”

Microsoft, Amazon, Alphabet, and Meta are collectively spending hundreds of billions of dollars on AI infrastructure. But despite accelerating investment, share prices have faltered as investors grow impatient for tangible results.

While the Magnificent Seven have shed trillions in value, semiconductor and memory companies have surged. “The market is already voting,” Green noted. “The firms supplying the chips, memory, computing power and infrastructure needed to build AI systems have been among the best-performing assets in the world.”

Apple’s recent decision to raise prices due to soaring memory and storage costs underscored the shifting balance of power. “It wasn’t simply a pricing announcement,” Green said. “It was an acknowledgment that even the world’s most powerful technology companies may no longer control the economics of their own ecosystem.”

Green stressed that this is not a bearish call on tech overall. “Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia and Tesla remain among the greatest companies ever created,” he said. “My argument is simply that markets will stop rewarding all of them equally.”

He expects further volatility, fragmentation, and reassessment in the months ahead. “The AI revolution is absolutely real. The mistake was believing that everyone participating in it would come out as an equal winner. They won't.”