Tesla (TSLA) has kicked off "Magnificent Seven" earnings, posting beats on adjusted earnings per share and higher gross margins. Ayako Yoshioka, Wealth Enhancement Group senior portfolio manager, joins Morning Brief to discuss what these results mean for the rest of the Magnificent Seven earnings and overall market leadership heading into 2025.

Yoshioka explains that there is a greater emphasis on tech sector earnings given its concentration in the S&P 500 (^GSPC) and weight within the Magnificent Seven. However, she notes that CapEx (capital expenditures) spending among hyperscalers will determine their leadership position moving forward.

She tells Yahoo Finance, "I think they're going to evaluate it at some point and see whether or not they need to continue at the pace that they've been at over the last few quarters."

With AI still being early in its development, Yoshioka argues that it's "going to be a while" before seeing real competition among hyperscalers and chip companies.

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This post was written by Melanie Riehl