Rothschild is adopting a more bearish stance when it comes to Microsoft and Amazon . The investment firm downgraded both "Magnificent Seven" titans to neutral from buy. Analyst Alex Haissl cited the need for investors to practice more caution when it comes to the generative artificial intelligence trade thesis going forward. "It is time to take a more cautious stance on the hyperscalers and move beyond the industry's reassuring 'trust us — Gen-AI is just like early cloud 1.0' narrative, which looks increasingly misplaced," he wrote. "Our analysis shows that the underlying economics are far weaker than assumed: GPU deployments require roughly six times more capital to generate the same cloud 1.0 value, with risks skewed to the downside/" Haissl continued: "At current valuations, investors a

See Full Page