The Magnificent Seven may already be 'dead and buried' thanks to AI split
It's been 12 months since the term was coined but investors are already toasting the demise of the market's latest supergroup.
The extraordinary run for a small group of mega cap tech stocks over the past year has helped push US share indicies to frothy new heights. But it’s becoming increasingly obvious that not all AI market darlings are created equal.
The ‘Magnificent Seven’ moniker comprises Alphabet, Amazon, Apple, Meta, Nvidia, Microsoft and Tesla. But the group coined in April 2023 to capture the market’s best performers is already beyond its use-by date, according to Magellan portfolio manager Nikki Thomas.
“Within that Magnificent Seven, Nvidia has shot the lights out and Tesla is actually down 20% so there is no more Magnificent Seven. You can dead and bury that one, even within a year,” Thomas told a Future Generation panel on Thursday.
Whether that's true remains to be seen. As we have seen in the past, the market loves a moniker, with FAANG stocks in the US and the WAAX names closer to home both catching on in recent years. For its part, the Wall Street Journal has already heralded the rise of a new market grouping — the 'Fab Four'.
