AI Stocks Soar in 2023: 'Magnificent Seven' Lead, But New Lists Emerge
The US stock market has seen a significant boost in 2023, with over 70 percent of the S&P 500 index increasing. The 'Magnificent Seven' tech stocks, which make up almost 35 percent of the index, are expected to grow profits by over 15 percent next year. Meanwhile, investors are proposing new lists like the 'Fab Four' or 'Elite 8' to better represent AI stocks.
The AI era has been a boon for many tech stocks. Companies like Broadcom, Oracle, and Palantir have thrived, with Palantir being one of the clear winners in AI software. However, established providers like Salesforce and Adobe seem to be losing ground. Tech giants such as Nvidia, Microsoft, Apple, Alphabet, Amazon.com, Meta, and Tesla have been driven to new heights by AI enthusiasm.
Experts like Nick Schommer highlight Taiwan Semiconductor Manufacturing, Oracle, and Broadcom as potential next-generation AI leaders. These companies play significant roles in the AI ecosystem, with Taiwan Semiconductor being crucial for hardware, and Oracle and Broadcom for infrastructure and software components. Despite the success of the 'Magnificent Seven', there's a split within the group, with some stocks performing better than others in 2025. The Cboe Global Markets has introduced the 'Magnificent 10' Index, including the original seven plus Broadcom, Palantir, and Advanced Micro Devices.
While the 'Magnificent Seven' continue to dominate, investors are exploring alternative lists to better represent the AI stock market. Companies like Taiwan Semiconductor Manufacturing, Oracle, and Broadcom are frequently mentioned as potential future leaders. However, some current heavyweights like Apple and Tesla face criticisms, with Apple being a latecomer in AI and Tesla facing declining demand and increasing competition.
