Time To Retire?
Scott Chronert of Citi says the label no longer describes where AI leadership actually is. In a note to clients this week, he argued the term has become “misleading” as the AI trade broadens beyond its original seven members.
Ten days ago, we showed you the same trend: five of the Magnificent Seven were lagging the S&P 500, while their valuation premium had fallen to its lowest level in a decade.
Chronert’s conclusion goes one step further.
The biggest AI winners may no longer all be in the original club.
Here’s what happened. ⇩
SPONSOR BREAK presented by Brownstone*
What is Trump’s decade-long obsession?
No president has moved markets like Trump.
He has a history of adding and wiping trillions from a market, seemingly at will.
But Larry says all of that was just the warm-up.
Because one plan has obsessed Trump for over a decade. Larry believes it’s about to send billions flooding into a single ticker.
If you want to get ahead of Trump’s next move – check out this presentation with Larry where he gives the name of that ticker for free.
Click here now while you’re still early..
The Club Isn’t Exclusive Anymore…
✱ Chronert is arguing that the Magnificent Seven have lost their monopoly.
He thinks that lens has become too narrow.
His argument is that some of the biggest earnings winners from AI aren’t in the original group at all.
Companies such as Broadcom, Micron, and AMD have become critical beneficiaries of the AI infrastructure buildout, making the old “Mag Seven vs. everyone else” framework increasingly misleading.
SPONSOR BREAK presented by MarketWise*
Get rid of overpriced AI stocks before a scheduled announcement on July 31st threatens to reshuffle the stock market’s winners and losers. Smaller, lesser-known names are now showing the overwhelming potential to dethrone AI’s Magnificent 7. On July 31st , this little-known stock in particular could soar while Tesla faceplants.
Get the name and ticker of this stock on your radar now…
AI Spending Stopped Being a Free Pass.
Investors happily rewarded Big Tech for spending billions on AI. Now, they’re starting to ask for results.
→ AI capital spending is expected to surge roughly 70% to more than $700 billion in 2026, with much of that investment coming from the original Magnificent Seven.
✱ The downside? All that spending is squeezing free cash flow. Deutsche Bank strategist Jim Reid summed up the shift in sentiment: “There is growing apprehension regarding the capex spend by the largest hyperscalers.”
The scoreboard reflects that change.
✱ Only Alphabet has outperformed the S&P 500 this year, rising 11% versus the index’s 8.3% gain. The other six are all trailing.
SPONSOR BREAK presented by Paradigm*
Trump to Unleash Giant $2.7 Trillion Gold Mine?
Executive Order #14153 outlines what Jim Rickards believes are Trump’s intentions to unleash the largest mineral reserve in the country.
According to Jim’s research, he estimates it contains up to $2.7 trillion in gold, silver, copper, and other precious elements
This single company – trading for just $2 per share – holds 100% of the rights to this asset.
But you need to act before November 3 to take advantage before the President makes his next move…
That’s when a landmark policy decision could reprice this $2 stock, overnight.
This opportunity is so explosive, it’s possible shares could skyrocket 50-times or more by the end of Trump’s term.
But – time’s running out.
Go here to get the full details before this stock soars.
The Index Hid a $3.2 Trillion Fight↓
Reported July 16 — included as context for today’s story.
While the S&P 500 barely moved, investors were aggressively reshuffling their AI bets.
Behind the scenes, investors poured roughly $1.5 trillion into the Magnificent Seven while about $1.7 trillion disappeared from semiconductor stocks outside Nvidia. The offsetting moves left the major indexes looking calm—even as one of the biggest rotations of the year unfolded underneath.
SPONSOR BREAK presented by MarketWise*
Will You Survive the MAR-A-LAGO RESET?
Bloomberg calls it “a dire shift of fortunes for America” and The Wall Street Journal calls it a “New World Order.” Now, Dr. David Eifrig – a 40-year market veteran who traded through Black Monday and has recommended more than a dozen triple-digit winners – warns that you must make one of the most important financial decisions of your lifetime today. He strongly recommends this ONE step to potentially secure your retirement.
Where AI Money Went Next?
The selloff has been especially painful in memory chips—a theme we’ve been following all month through Micron, Samsung, and SK Hynix. After months of speculation, the group has slipped into a bear market as investors question whether AI demand can justify the sector’s lofty expectations.
Strategas ETF strategist Todd Sohn sees echoes of another market frenzy: “There’s some similarity between the ARKK rush in 2020 and the semiconductor and memory stock rush today.”
Trading volume in semiconductor ETFs has jumped from roughly $9 billion a day a year ago to more than $40 billion, while semiconductors have grown to nearly 18% of the S&P 500—a level Strategas describes as historically rare.
Stock by stock.
→ Microsoft – Shares remain about 25% below their peak as investors question whether AI spending is translating into profits quickly enough. The company is investing at an annualized pace of roughly $190 billion in AI infrastructure while AI-related revenue is estimated near $37 billion. Gaming has also softened, with Xbox revenue down 5% year over year, prompting approximately 4,800 layoffs and a restructuring of the gaming division.
→ Amazon – Revenue grew 17% year over year in the first quarter, while AWS expanded 28%. The company plans to spend roughly $200 billion on capital expenditures this year—about 60% more than last year. To help finance that investment, Amazon has raised $62 billion through bond offerings in 2026, while continuing to expand AWS through partnerships with Warner Bros. Discovery, Fox, and Southwest Airlines.
→ Alphabet – Alphabet shares are down roughly 12% since early May despite Google Services revenue increasing 16% year over year and Google Cloud revenue jumping 63%, more than doubling cloud operating income. With Android powering about 69% of the world’s smartphones, investors will be watching the company’s upcoming earnings report for clues on whether those fundamentals begin to outweigh recent market skepticism.
Labels Age Faster.
The Magnificent Seven was never meant to be permanent.
It was a shortcut for the market’s biggest growth story at the time. As AI investment spreads across more companies, that shortcut becomes less useful. The opportunity—and the risk—is no longer confined to seven stocks.
The next chapter of the AI trade may not need a new nickname. It may simply require a wider watchlist.
Don’t forget to cast your vote 👇
Lesson Of The Day:
Was this email forwarded to you? Don’t miss out on future stories — subscribe using the button below.
Also, help your friends blossom this spring! Share us with them.
💬 We Want To Hear Your Story:
Got a market or stock you want us to analyze next?
Just drop your request in the comments here.
P.S. – If you no longer want to receive occasional emails from us and you want to unsubscribe, click here 👉 “Unsubscribe” . Thank you!
