Jul. 22 at 12:40 AM
A growing number of investors are looking beyond Nvidia and the "Magnificent Seven" for AI opportunities, arguing that companies effectively deploying artificial intelligence may offer stronger long-term returns than those primarily building AI infrastructure. After years of leading the market, the megacap tech group—described by some as the "Bag Seven"—has lost momentum in 2026, with most members trading below their highs even as the S&P 500 has gained more than 9%.
Rather than focusing on AI chipmakers and hyperscalers, analysts highlight companies that are integrating AI into their core operations to improve efficiency, automate workflows, enhance customer experiences, and expand margins. Firms such as Costco, Visa, Salesforce, ServiceNow, and Evolent Health are increasingly using AI to optimize logistics, payments, enterprise software, customer service, and healthcare operations, potentially creating durable competitive advantages.
$COST $V $CRM $NOW