The Battle for AI Supremacy Intensifies! The Era of the 'Magnificent Seven' in U.S. Stocks Is ...

The Fidelity Investments portfolio manager overseeing $16 trillion warns that Wall Street's "Magnificent Seven" tech stocks are losing their grip as AI evolves beyond infrastructure.

The once-dominant group of NVIDIA, Microsoft, Apple, Alphabet, Amazon, Meta, and Tesla, which drove over half of S&P 500 gains since 2023, faces challenges from emerging AI powerhouses. Companies like Palantir (up 135% in 2025), Oracle (surging 75%), and Broadcom are capitalizing on AI's shift toward practical applications. Portfolio managers increasingly question whether current giants can maintain dominance as AI transitions from infrastructure development to specialized software solutions.

• Wall Street proposes new portfolios like "Fab Four," "Elite Eight," and "Top Ten Giants" to capture true AI winners
• Apple and Tesla show signs of weakness while specialized AI companies outperform traditional tech leaders
• Investment focus expands beyond the original seven to include chipmakers, cloud providers, and AI software specialists
• Market concentration risks emerge as valuations climb and leadership potentially shifts to application-layer companies