Citi Ditches the Mag 7 Label, Bets on a Broader AI Growth Tech Cluster

Citigroup strategists say the Magnificent Seven framing is no longer a reliable guide to AI winners, urging investors to focus on a broader growth cluster of big tech and AI infrastructure names that drive S&P 500 earnings and market value. The Mag 7 have underperformed in 2026 and their price correlations have broken as investors rotate toward AI adopters and enablers; Citi notes growth-cluster valuations remain historically attractive, suggesting bets should exceed the traditional Mag 7 vs. rest narrative.