Nearly three years after ChatGPT ignited the artificial intelligence boom, the “Magnificent Seven” stocks that dominated the rally – Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta (NASDAQ:META) and Tesla (TSLA — may no longer fully capture the breadth of the trade, Bloomberg News reported Sunday.
The group has powered more than half of the Standard & Poor’s 500 stock index’s (SP500) 70% gain since early 2023, but new winners are emerging. Companies such as Broadcom (NASDAQ:AVGO), Oracle (NYSE:ORCL) and Palantir (NASDAQ:PLTR) are increasingly viewed as central to the AI story, raising questions over whether the Mag Seven still defines market leadership.
Chris Smith, a portfolio manager at Artisan Partners, argued that just because these tech giants led in past eras like mobile and e-commerce doesn’t mean they’ll dominate AI. He said the next leaders will be those addressing vast markets with AI solutions, Bloomberg News reported.
Performance already diverges within the seven. Nvidia, Microsoft, Alphabet and Meta are up strongly this year, while Apple, Amazon and Tesla are lagging. Analysts have responded by suggesting new lineups: a “Fab Four” centered on core AI plays, a “Big Six” excluding Tesla or an “Elite Eight” that adds Broadcom.
Other names are forcing their way into the conversation. Oracle’s stock has jumped more than 75% this year on cloud growth, while Palantir is the Nasdaq 100’s top performer, more than doubling in 2025. Fidelity’s Jurrien Timmer noted that as AI evolves, new winners are likely to take the spotlight, even if the old guard continues to do well.
Wall Street’s habit of bundling stocks into catchy groups has evolved over decades, from the “Nifty Fifty” to FAANG. The Cboe recently launched futures and options on a “Magnificent 10” index that includes Broadcom, Palantir and AMD (NASDAQ:AMD) alongside the original seven. Yet even that left out Oracle, despite its strong gains.
Some see Apple and Tesla as vulnerable — Apple for lagging in AI, Tesla for slowing EV demand — but both still have loyal investors betting on future breakthroughs in devices and autonomous tech. Meanwhile, firms like TSMC (TAM), Arista Networks (NYSE:ANET) and Micron (NASDAQ:MU) are being highlighted as vital parts of the AI ecosystem.
Ultimately, as AI adoption spreads from infrastructure to applications and broader industries, the market’s leadership could shift again. Timmer cautioned that concentrated trades often end abruptly: the Mag Seven era may give way to a smooth rotation, or something sharper, Bloomberg News reported.