Meta’s AI Capex Slows Tech Returns Under 25%, Value Stocks Lead 18%
Goldman Sachs notes that the Magnificent Seven’s returns fell from 75% in 2023 to about 50% in 2024 and below 25% in 2025 as hyperscalers such as Meta increase AI data-center capex. The Russell 1000 Value index has outperformed its Growth counterpart by 18 percentage points over three months.
1. Goldman Sachs Research Note
Goldman equity analyst Peter Oppenheimer warns the AI infrastructure boom among hyperscalers is reconnecting digital and physical sectors, signaling a structural shift away from pure growth tech.
2. Slipping Hyperscaler Returns
The report highlights that the Magnificent Seven delivered 75% returns in 2023, slowed to about 50% in 2024 and dipped below 25% in 2025 as companies including Meta escalate spending on data centers and GPUs.
3. Value vs Growth Outperformance
Investors have shifted toward capital-intensive names, driving the Russell 1000 Value index to outpace its Growth counterpart by 18 percentage points over the past three months, reflecting renewed interest in industries tied to power grids and industrial assets.