Bloomberg called the "Magnificent Seven" obsolete. Which stocks to pay attention to?

Wall Street's most powerful group of stocks, the "Magnificent Seven," has lost relevance, Bloomberg argues. Shares of Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms and Tesla have long been considered the best way to capitalize on the biggest technology shift since the advent of the Internet. But the artificial intelligence boom has led to investment strategies focused only on the "Magnificent Seven" to overlook promising AI companies, the agency said. Wall Street is already coming up with alternatives - the Terrific Four, the Big Six and the Elite Eight - that more precisely define the circle of beneficiaries of AI betting.

Among the contenders for leadership, analysts have recently particularly cited TSMC, as well as Oracle and Broadcom - crucial elements of the AI ecosystem. Another company, Palantir, is considered one of the few beneficiaries in the neural-network software field, while past leaders Salesforce and Adobe suffer from a reputation for lagging behind, Bloomberg writes. In addition, AI is driving growth in related industries: power generation, network infrastructure (Arista Networks), development of high-speed memory chips (Micron Technology) and data storage (Western Digital, Seagate and SanDisk), the agency emphasizes.

The divergence in stock dynamics has also started to be observed within the "Magnificent Seven". Nvidia, Alphabet, Meta and Microsoft are considered well-prepared for the AI era, with their stock prices up 21-33% in 2025. Apple, Amazon and Tesla have less clear prospects - and are lagging far behind, the article says.

That's why Wall Street analysts suggest modifying the "Magnificent Seven" concept. Some have shortened it to the "Terrific Four" - Nvidia, Microsoft, Meta and Amazon. Jonathan Golub of Seaport Research suggested eliminating Tesla and creating a "Big Six." Ben Reitzes of Melius Research favors the "Elite Eight" - the Seven plus Broadcom, Bloomberg notes.

The concept of the "Magnificent Seven" is not new to Wall Street, which likes to form groups of trendy stocks to simplify the investment picture, from the Nifty Fifty in the 1960s to the Nasdaq Four Horsemen in the dot-com era and FAANG stocks in the 2010s. These groups of securities dominated the stock market for years, but eventually ceded leadership to new names - and the Magnificent Seven appear likely to be no exception, the agency said.

The problem in identifying the beneficiaries of the AI boom is that several key companies in the industry are non-public. OpenAI, which would be on any list of the most successful AI companies, is not available to most investors. Anthropic and SpaceX are also not publicly traded. According to Forge Global's OTC trading platform, where shares are offered by private investors rather than companies, OpenAI 's stock price has jumped 150% since the start of 2025, Anthropic 's has jumped 440%, and SpaceX 's has tripled.

This article was AI-translated and verified by a human editor