Key Takeaways

  • The so-called "Mag 7" tech giants are no longer a cohesive investment unit, with none matching the NASDAQ's 18% growth over the last six months, according to Lucas Swisser.
  • Swisser predicts a new "AI8" will emerge, dominated by core AI infrastructure, chips, and memory companies, alongside new-generation AI labs and tech giants with strong AI plays.
  • His proposed "AI8" includes names like OpenAI, Anthropic, ByteDance, SpaceX, Amazon, Google, Nvidia, and TSMC, highlighting a shift away from traditional consumer tech dominance.
  • Companies like Apple and Meta face potential displacement from top-tier lists due to a perceived lack of clear AI strategy (Apple) or an overreliance on open-source AI that hasn't found broad adoption (Meta).

The Mag 7 Is Already History

Lucas Swisser, co-head of growth investing at CO2, pulls no punches: the famed "Mag 7" is over. “I would posit that the Mag 7 is already over, right?” Swisser said. He backs this claim with recent market performance, noting that while the NASDAQ climbed 18% over the past six months, no single stock within the "Mag 7" matched that rise. This isn't just market noise; it's a signal that the unified front these giants once presented is dissolving. The era of bundling these companies together, simply because of their market caps, is ending. For builders and founders, this means the old playbooks and competitive landscapes are outdated, demanding a fresh look at where true value will accrue in the AI-first world.

Meet the AI8: Who's Building the Next Power List?

If the old guard is dissolving, who takes their place? Swisser points to an "AI8" that includes a mix of established players and soon-to-be-public companies. This isn't just a re-shuffling of familiar faces; it’s a redefinition of what makes a tech powerhouse. His list includes foundational AI labs like OpenAI and Anthropic, which are directly shaping the future of AI capabilities. It also features ByteDance, which he notes "has a fantastic AI business and AI model," and SpaceX, a company pushing the boundaries of physical infrastructure critical for an AI future.

Crucially, Swisser emphasizes core AI infrastructure. Amazon and Google are in for their cloud and AI services, while Nvidia is an obvious choice for its chip dominance. Perhaps the most telling inclusion is TSMC, a company at the heart of chip manufacturing. This shift highlights that the new titans aren't just consumer-facing platforms; they are the architects and suppliers of the underlying intelligence layer. “Maybe you have like an AI mag 8 or an AI 8 or something like that,” Swisser said, hinting at a list that "looks completely different."

The Vulnerable Giants: Apple and Meta's AI Blind Spots

Not everyone makes the cut in Swisser's future vision. He points out that some current "Mag 7" members face serious challenges in the AI world. When asked which company he'd remove from the current top seven, Swisser stressed thinking about "who's best positioned in an AI world and who's worst positioned in an AI world." Apple, despite its "incredible platform" and being a “$4.5 trillion company,” lacks a clear AI strategy. “There hasn't completely missed AI,” Swisser asserts, suggesting a major blind spot for the device giant. Meta, on the other hand, faces a different hurdle: “they sort of levered to this open source ecosystem. Open source hasn't been really successful from an adoption perspective here.” For a founder, this is a sharp reminder that platform size and past success offer no guarantee against strategic missteps in a rapidly changing technological climate.