Citigroup strategists have declared the "Magnificent Seven" label outdated for evaluating US stock market opportunities in the AI sector. Led by Scott Chronert, the strategy team advises investors to focus on a broader "Growth Cluster" portfolio. This includes large-cap tech stocks and companies benefiting from AI infrastructure, which now drive over half of the S&P 500's market capitalization and nearly 48% of its earnings.
The "Magnificent Seven" index, which previously propelled the S&P 500 to record highs, has underperformed in 2026. Investors are shifting towards industries poised to gain from significant AI capital expenditures, marking a strategic pivot in investment focus.
Citi Declares 'Magnificent Seven' Label Obsolete for US Stocks
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