The record-breaking market debut of SpaceX last week, with a valuation surpassing $2 trillion, has eclipsed two members of the so-called "Magnificent Seven" and sparked a crucial debate: Is this famous label still relevant, and if not, what should replace it?
This historic IPO, the largest in U.S. history, propelled SpaceX's market capitalization past that of two Mag 7 constituents: Tesla Motors and Meta Platforms, Inc. Analysts suggest that with potential trillion-dollar candidates like OpenAI and Anthropic preparing for their own public listings, this exclusive club may soon require a rebranding.
Shay Boloor, Chief Market Strategist at Futurum Equities, noted that with the inclusion of SpaceX, "it becomes very difficult to continue using 'Mag 7' as shorthand for market leadership when one of the world's most important companies is excluded by that label."
These groupings are not formal market classifications but rather informal tags created by strategists, investors, and media to capture the hottest large-cap stocks of a particular era. This practice has a long history, from the "Nifty 50" of the 1960s and 70s to the "Four Horsemen" of the late-1990s dot-com bubble.
The SpaceX IPO has ignited a race to coin the next catchy acronym. On social media platform X, one nickname gaining traction is "MANGOS," representing Meta Platforms, Inc., Anthropic, NVIDIA, Alphabet, OpenAI, and SpaceX. However, this combination is far from standardized, with some interpreting the "A" as Apple, which is currently the third-largest listed company in the U.S. by market cap.
"We've started using it internally, and it's gaining acceptance in the industry," said Aga Kuplinska, Senior Vice President of Product Development at Tidal Financial Group, a firm that helps asset managers launch ETFs.
Taking a different approach, Dan Boardman-Weston, CEO of BRI Wealth Management, proposed the concept of "Magna Atoms" – essentially the original seven giants plus SpaceX, OpenAI, and Anthropic.
Evolution of the 'Magnificent Seven'
The term "Magnificent Seven" was coined in late 2023 by Michael Hartnett, Chief Investment Strategist at Bank of America Global Research, to describe seven heavyweight tech stocks: NVIDIA, Apple, Amazon.com, Alphabet, Meta Platforms, Inc., Tesla Motors, and Microsoft.
As the AI boom propels stock markets to new highs and new trillion-dollar contenders emerge, the rankings are in a constant state of flux. In a May 22 report, Bank of America introduced the "AI-10," adding Broadcom, Micron Technology, and Advanced Micro Devices to the original seven to reflect the semiconductor sector's strong performance over the past year. Data from LSEG shows the "AI-10" now accounts for over 40% of the S&P 500's weight.
These labels have evolved multiple times before – from FANG to FAANG to the Magnificent Seven – with each change reflecting a shift in the companies leading the market. FANG covered Facebook (now Meta Platforms, Inc.), Amazon.com, Netflix, and Google (now Alphabet). FAANG added Apple, while the Magnificent Seven dropped Netflix and added Microsoft, NVIDIA, and Tesla Motors.
"The 'Magnificent Seven' moniker has been around for a few years. Perhaps the market is ready for something new," said Dustin Thackeray, Chief Investment Officer at Crewe Advisors.
Of course, not everyone believes the old label will fade away. "The 'Magnificent Seven' tag isn't going anywhere," said the CEO of Roundhill Investments. "It's deeply embedded in how investors and media think about large-cap tech leadership. What you might see in the future is an addition to the terminology, not a replacement."
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