Wall Street analysts are replacing the "Magnificent 7" shorthand with a new "FAB 10" label to group AI-related stocks [1, 3].
This shift reflects a broader market transition as investors seek the next phase of the artificial intelligence trade. The expansion indicates that the concentration of AI growth is moving beyond the original seven tech giants to include specialized AI firms and aerospace innovators [1, 2].
The new grouping incorporates high-profile companies such as SpaceX, OpenAI, and Anthropic [1, 3]. This evolution follows the record-breaking market debut of SpaceX, which has prompted strategists to redefine how they categorize the most influential players in the sector [1, 2].
Market terminology for these leading stocks has evolved rapidly. While some analysts have embraced the FAB 10 label [1, 3], others have suggested different designations, including "MANGOS" or Bank of America's "AI Big 10" [2].
Despite the varying names, the underlying trend remains the same. Investors are diversifying their portfolios to capture the growth of companies that provide the foundational infrastructure, and models for AI [1, 2]. The inclusion of SpaceX highlights the intersection of aerospace and AI technology as a primary driver for U.S. equity markets [1, 3].
“Wall Street is expanding the “Magnificent 7” shorthand to a new “FAB 10” label”
The transition from the Magnificent 7 to the FAB 10 signifies a maturation of the AI investment thesis. By incorporating private-turned-public entities and specialized labs, Wall Street is acknowledging that the AI economy is no longer just about the software and hardware giants, but also about the disruptive companies that apply these technologies to physical infrastructure and frontier research.
