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Instead, companies delivered an astounding 12.0%, marking the third consecutive quarter of double-digit earnings growth.[7] A secular theme emerging in AI: Part of the reason for this impressive beat was the fact that the Magnificent Seven (Nvidia, Microsoft, Meta, Google, Apple, Tesla, and Amazon, also known as the Mag 7), and in particular the hyperscalers in that group (Meta, Microsoft, Amazon, Google, and Nvidia) continue to power market leadership.[8] In the second quarter, the Mag 7 grew earnings at 26.6% year-over-year, while the rest of the market improved by a still-healthy 8.1%.[9] The effects of AI investment are just as visible in the real economy