January 9, 2026

 

(COULD RELYING ON MAG SEVEN DOMINANCE BE A RISKY BET?)

 

January 9, 2026

 

Hello everyone

 

It’s no secret that AI is drawing Australian investors to the booming U.S. artificial intelligence sector, where they are hoping to profit from the extraordinary returns that have been evident thus far.

Yet the era of tech giant dominance could mean a riskier bet than many realise.

The Mag Seven technology stocks of Apple, Nvidia, Google owner Alphabet, Amazon, Tesla, Meta, and Microsoft make up more than a third of the S&P500 index’s value.  If you add in Netflix and Broadcom, you are getting that dominance rising closer to 45 per cent.  That means almost half the market cap is covered by nine stocks.

Let’s draw a comparison here- during the peak that preceded the dot-com crash in 2000, the six top tech companies accounted for roughly 15 per cent of the top 500 U.S. stocks.

Of course, it is important to note that there are many differences from the dot-com era.  Most of the Mag Seven have pre-existing businesses that don’t depend on AI.

But we know that enormous sums are flowing into AI research.

Microsoft, Amazon, Meta, and Alphabet alone spent an estimated $US350 billion in 2025 on AI research and infrastructure, including the data centres required to power the technology’s large language models.

The research announcements, deal with Open AI, which in some cases have led to huge stock price jumps, appear to be good news, but a nagging undercurrent of concern is becoming evident in the tech sector.

Investors are getting nervous about the tech sector’s ability to navigate the treacherous boundary between debt, earnings, and delivery of benefits to consumers.

Michael Burry is Betting Big that AI Stocks will crash by 2027

Burry, played by Christian Bale in The Big Short, has bets worth around $10 million that Nvidia and Palantir will fall significantly by 2027. 

Burry’s bet pays off if Nvidia drops 37 per cent to $110 by 2027 (it’s about $190 now) and Palantir falls to $50 from roughly $200. 

Burry has compared Nvidia to Enron, saying that the company is using tactics that exaggerate chip life expectancy and accounting to inflate earnings.

Nvidia has rebutted all of Burry’s accusations.

Time will tell if he is correct.  While Burry made $700 million betting against the housing market before the 2008 crash, many of his predictions over the past 15 years have mostly been wrong.

 

Move over, precious metals, industrial metals will take the limelight soon.

Unless you have been living in a cave, you have seen the early expansion of a commodities Supercycle, care of the precious metals’ rallies in silver and gold, and platinum.

We have also seen a big move in copper.

And this is how the process goes.

In a Commodity Supercycle, first we see gold rally, then silver and other precious metals.

Then industrial metals start to rally – look at copper.

And then finally soft commodities – think agriculture.

Let’s go back to industrial metals, as I want to draw your attention to a couple of stocks that are still in accumulation mode.  In other words, they have not grabbed the attention of the public yet.  They are quietly setting up.

These stocks are focused on Graphite and Nickel, and they are listed on the (ASX).

First, TALGA Group (ASX: TLG).  This company is an Australian technology minerals company that is a global leader in the development and production of sustainable battery materials, primarily for electric vehicles and energy storage systems.

Current Price: Jan 8, 2026: A$0.40

Market Cap: Approximately A$107 million

Business Focus: The company is vertically integrated, utilizing its 100% owned graphite resources in Sweden to produce a natural graphite anode material called Tainode-C, known for its ultra-low carbon footprint.  They also develop other products like graphene additives.

Analyst outlook on this company: The consensus analyst rating is a “Strong Buy” with an average one-year price target of A$0.90, suggesting a potential upside.

In the News:  In late 2025 and early 2026, the company announced various initiatives, including an “Industrial Leap” grant application to advance commercial-scale anode production and the launch of a recycled battery waste graphite anode product called Tainode-R.

Below is a weekly chart of TALGA Group.  You can see that the company has been in Accumulation mode for half of 2024 and all of 2025 and is quietly setting up for a breakout move in 2026.

 

 

The second stock I want to focus on is NOVONIX (ASX: NVX).

As you can see in the chart below, it is still in accumulation and is poised for growth as the next sector rotation emerges.

 

 

NOVONIX (ASX: NVX, NASDAQ: NVX) is a leading Australian American battery technology and materials company that develops and supplies innovative, sustainable technologies and high-performance materials for the global lithium-ion battery industry.

The company operates in battery materials, focusing on synthetic graphite for anodes and developing an all-dry cathode synthesis process.  They also offer battery cell testing equipment and R&D services through their Battery Technology Solutions segment in Canada. 

NOVONIX promotes sustainable methods, including a synthetic graphite process with lower global warming potential and a water-free all-dry cathode synthesis process.

Current Price: A$0.56

Analyst Outlook:  The consensus analyst rating is a “Strong Buy”.  The stock holds buy signals from both short and long-term Moving Averages, giving a positive forecast for the stock.  The 12-month price target is around A$1.00.   

If you want to be exposed to nickel, look no further than the Australian giant, BHP Group. (ASX: BHP) It is historically Australia’s largest nickel producer through its Nickel West operations in Western Australia.   The company has focused on producing nickel sulphate for the electric vehicle (EV) battery market.  Interestingly, BHP did suspend nickel production in late 2024 due to low prices.

I did recommend (BHP) in 2025 as it is a giant in the industrial metals space.

Current Price: A$47.72

Price Target:  Average price target is A$49.00 with a max estimate of $56.00.

 

 

 

I would also recommend holding positions in Northern Star (ASX: NST) and Evolution Mining (ASX: EVN).  Wait for a correction to gain entry.  Dollar cost average.

Both these companies are major gold producers focused on acquiring and developing high-quality, low cost, long-life gold assets in stable jurisdictions like Australia and Canada. They exhibit efficient operations and good shareholder returns and are a good long-term hold through this commodity Supercycle.

 

SOMETHING TO THINK ABOUT

Marjanul Islam (Global Markets researcher)

🔴 Trump is marching the Army because the Dollar isn’t working.

Money is like a map, not the territory. Money isn’t an asset; you can buy assets with money.

But what if I stop accepting your money?

That is exactly what is happening to the US dollar.

Trump sent the army to Venezuela to stop Chinese influence in the Western territory. Why?

Because if China gets smooth access to commodities and raw materials, it will do more business, trade more, export more, and use less and less dollars, eventually building its own payment and reserve system.

Okay, then why does the USA need Greenland?

The US has an unlimited amount of dollars, yet even with an unlimited global reserve currency, it couldn’t buy rare earth minerals from China.

As China stops believing in the map (money), the USA is going after real territory.

Under the Trump administration, Greenland is seen as a place that could rescue America from mineral shortages.

If the post-1970s US dollar fiat system had worked smoothly, the USA wouldn’t have needed to send the military to Venezuela or even think about sending it to Greenland.

 

 

Cheers

Jacquie