Last Friday, the entry of SpaceX into the U.S. stock market with a valuation exceeding $2 trillion has sparked a crucial debate. Its market capitalization now surpasses two members of the so-called "Magnificent Seven," raising the question of whether this label remains relevant and what might replace it.
Is the 'Magnificent Seven' Label Outdated?
SpaceX's landmark IPO, one of the largest in U.S. history, propelled its value past that of two giants: Tesla and Meta Platforms Inc (NASDAQ: META), both also led by CEO Elon Musk. With other AI powerhouses like OpenAI and Anthropic also approaching potential public offerings, analysts suggest a new moniker may soon be needed to encapsulate the leading U.S. stocks.
"With the arrival of SpaceX, it's difficult to continue using 'Mag 7' as a shorthand for market leadership, as one of the world's most significant companies would be excluded from that tag," stated Shay Boloor, Chief Market Strategist at Futurum Equities.
The "Magnificent Seven" label itself was never an official market classification. It was coined by market analysts, investors, and media to describe the seven large-cap technology stocks that dominated market performance over the preceding two years.
Wall Street has a long tradition of creating such nicknames for hot stocks, from the "Nifty 50" of the 1960s and 70s to the "Four Horsemen" of the late-1990s dot-com bubble.
What New Nicknames Are Emerging on Wall Street?
A new acronym gaining traction, particularly on social media platform X, is "MANGOS." Each letter represents a company: Meta Platforms Inc (NASDAQ: META), Anthropic, NVIDIA Corp (NASDAQ: NVDA), Alphabet Inc (NASDAQ: GOOGL), OpenAI, and SpaceX. Interpretations vary, with some suggesting the "A" could stand for Apple Inc (NASDAQ: AAPL), the third most valuable U.S.-listed company.
"We've started using this name internally, and the industry is gradually taking notice," said Aga Kuplinska, Vice President of Product Development at Tidal Financial Group.
Dan Boardman-Weston, CEO of BRI Wealth Management, proposed a different alternative: "Magna Atoms." This would essentially expand the original "Mag 7" by adding SpaceX, OpenAI, and Anthropic.
Furthermore, back on May 22nd, the Bank of America analyst who originally coined the "Magnificent Seven" term three years ago suggested a new grouping in a report: the "AI Big 10." This would add companies like Broadcom Inc (NASDAQ: AVGO), Micron Technology Inc (NASDAQ: MU), and Advanced Micro Devices Inc (NASDAQ: AMD) to the original seven, reflecting the semiconductor sector's surge over the past year. Data from LSEG indicates such a group would account for over 40% of the S&P 500's weighting.
This leads to speculation: if this is the new benchmark, perhaps Wall Street could further expand it to include SpaceX, Anthropic, and OpenAI, creating a new grouping like the "AI Big 15."
Will the Old Label Fade Away?
However, not everyone believes the old "Magnificent Seven" tag is destined to disappear.
"The 'Magnificent Seven' moniker isn't going away," stated Dave Mazza, CEO of Roundhill Investments. "It's deeply embedded in how investors and the media think about large-cap tech leadership. You might see new acronyms emerge in the future, but the original 'Magnificent Seven' likely won't be replaced."
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