Citigroup’s strategists urged investors to move beyond the Magnificent Seven framework, saying the term is no longer an effective way to assess large-cap growth or the US AI investment landscape.
Strategist Scott Chronert instead recommended focusing on a broader growth cluster comprising major technology companies and firms involved in AI infrastructure, which together represent more than half of the S&P 500’s market value and contribute nearly half of its earnings.
The shift comes as the AI trade broadens across the US equity market. Strategists at Citi said the Magnificent Seven have underperformed in 2026 as investors increasingly favor companies expected to benefit from expanding AI investment.
Performance within the group has also diverged, with Apple rallying after avoiding the AI data center spending race, while Microsoft and Meta have come under pressure over the payoff from large capital expenditure programs.
Chipmakers, which drove gains earlier this year, have likewise begun to underperform amid valuation concerns.
