Wall Street strategists and traders are actively searching for the next ‘Magnificent 7’ group of market leaders, developing new acronyms and investment themes. This effort reflects a market where the dominance of the original seven technology giants is evolving, prompting a re-evaluation of which stocks will drive future gains. The emergence of new labels like MANGOS and FAB 10 indicates a desire to capture the current market momentum, particularly in areas like artificial intelligence and space exploration.
The impulse to label dominant stock groups is a long-standing tradition on Wall Street. These monikers typically appear when a small cluster of stocks achieves significant size, influence, or market importance. The “Magnificent Seven” label effectively characterized the AI-driven megacap trade during the early stages of the recent bull market, as these seven companies primarily propelled market growth. However, by late 2023, the rally’s breadth expanded beyond just these seven stocks, and by 2024, the composition and performance within the group itself began to diverge.
Performance data illustrates this shift. Over the past year, Alphabet has more than doubled its value, while Meta and Microsoft have both experienced double-digit percentage declines. This divergence highlights the need for new frameworks to describe market leadership, moving beyond the singular focus on the original seven.
One proposed group, the FAB 10, expands on the original Magnificent Seven by incorporating private companies like SpaceX, OpenAI, and Anthropic. This addition suggests an investor focus on companies at the forefront of technological innovation, even those not yet publicly traded. Vanda Research noted that “if the last few years were dominated by the Magnificent Seven, SpaceX’s IPO was perhaps the clearest sign yet that investors are starting to focus” on the FAB 10.
Another emerging acronym, MANGOS, emphasizes frontier artificial intelligence and space technology. This group includes Meta, Anthropic, Nvidia, Google, OpenAI, and SpaceX. This selection points to a market sentiment that prioritizes companies with significant exposure to advanced AI development and the burgeoning space industry.
Bank of America’s AI Big 10 offers a different perspective, maintaining a focus on publicly traded companies. This group integrates Broadcom, AMD, and Micron with the original Magnificent Seven. This approach suggests an emphasis on semiconductor manufacturers and other hardware providers that are foundational to the expansion of artificial intelligence capabilities.
Wall Street has a history of coining names for its favored investments. The “Nifty Fifty” represented the blue-chip growth stocks of the 1960s and 1970s, seen as long-term holds. The “Four Horsemen” defined the late-1990s dot-com infrastructure boom. Later, “FANG” and “FAANG” became shorthand for the internet-platform era of the 2010s. Internationally, “BAT” described China’s internet giants, while “GRANOLAS” characterized Europe’s largest compounders, demonstrating the global nature of this naming convention.
The market’s search for the next dominant stock group continues as technological advancements and economic conditions reshape investment priorities. The long-term performance of these newly identified groups, and whether any will achieve the sustained influence of the original Magnificent Seven, remains to be seen. Investors will closely watch how these emerging themes and companies perform in the coming months.