In a recent discussion on The Noble Update Podcast, technical strategist Bran Shannon provided a critical outlook on the current state of tech stocks, particularly focusing on the so-called “Magnificent 7,” a group of AI-infused giants including Microsoft and Nvidia. Shannon, the founder of AlphaTrends—a technical-analysis platform—argued that the dominance of these companies is waning, labeling them as “dead money.”
He emphasized that while he doesn’t advocate shorting Microsoft, he believes that the stock is unlikely to yield significant gains in the immediate future. Shannon noted that the trend indicates larger amounts of capital are exiting these tech giants, with the potential for a minor bounce but no substantial upward movement. His assessment of Nvidia was similarly skeptical, describing it as lacking genuine growth potential and noting its stagnant trading range between $165 and $200 per share, a position it has maintained since August 2025.
Shannon pointed out that other semiconductor companies, including Sandisk and Micron, have been outperforming Nvidia during this period. However, he cautioned investors about the inherent volatility of such stocks, warning that substantial pullbacks are likely and advising caution when chasing prices during bullish trends.
The strategist’s perspective aligns with podcast host George Noble, who has previously voiced bearish sentiments regarding the AI sector. With an apparent shift away from tech stocks, Shannon recommended that investors explore opportunities in other sectors, specifically energy and utilities. He acknowledged that while many investors are fixated on tech downtrends and Bitcoin challenges, significant profit potential exists in these overlooked areas.
Shannon specifically mentioned the State Street Energy Select Sector SPDR ETF as an avenue for gaining exposure to the burgeoning energy market. He urged those interested to wait for a pullback before investing, suggesting that the sector has substantial growth potential ahead.
Both Shannon and Noble’s analyses reflect a growing sentiment among a segment of investors to diversify their portfolios beyond the technology sector, looking instead to capitalize on opportunities in energy and utilities that may have been previously overshadowed by the allure of high-tech stocks.
