Why it's time to retire the 'Magnificent 7' name: Strategist - Yahoo Finance

What the report says

Yahoo Finance reported that Citi strategist Scott Chronert is arguing the market should move away from the “Magnificent Seven” label for the dominant technology stocks that have shaped recent equity performance. The group traditionally includes Apple, Alphabet, Microsoft, Amazon, Meta, Tesla and Nvidia, but Chronert said the framing no longer captures where artificial intelligence-related earnings momentum is coming from.

According to the report by Yahoo Finance Executive Editor Brian Sozzi, Chronert said comparing the Magnificent Seven with the rest of the S&P 500 is now an unhelpful lens because some of the strongest AI beneficiaries sit outside the original group. He suggested adding Broadcom, Micron and AMD to better reflect companies tied to the AI infrastructure buildout, while noting that even an expanded basket would omit other relevant contributors such as Intel, Applied Materials, Cisco and Lam Research.

Yahoo Finance cited 2026 market performance as part of the case for retiring the label. It reported that every Magnificent Seven stock except Alphabet has lagged the S&P 500 so far this year; Alphabet was up 11% year to date, compared with an 8.3% gain for the index. Chronert also said the expanded grouping’s earnings contribution represents more than half of consensus S&P 500 growth expected for 2026.

The report framed the shift as part of a broader debate on Big Tech’s AI spending. Yahoo Finance said investors are increasingly focused on large capital expenditures for data centers and advanced chips, with projected AI-related spending rising 70% to more than $700 billion this year. Deutsche Bank strategist Jim Reid was cited as warning of growing concern over hyperscaler spending.