Wall Street’s favorite market shorthand may need an upgrade. A new framework called the FAB 10 — Frontier AI & Big Tech 10 — is gaining traction among investors, and it could be the defining investing construct of the AI era.
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The term FAB 10 comes from Vanda Research, which coined it after Friday’s market action signaled a clear shift in investor focus.
“If the last few years were dominated by the ‘Magnificent 7,’ Friday was perhaps the clearest sign yet that investors are starting to focus on what we call the FAB 10,” Vanda said, according to CNBC.
The FAB 10
The FAB 10 takes the original Magnificent 7 — Nvidia Corp. (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOGL), Microsoft Corp. (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:META) and Tesla, Inc. (NASDAQ:TSLA) — and adds three frontier AI giants: OpenAI, SpaceX (NASDAQ:SPCX) and Anthropic.
The Magnificent seven alone carry a combined market cap of roughly $22.62 trillion, with Nvidia leading at $5.13 trillion, trading at $211.96 a share Monday, up 3.30%.
Meta is the session’s outperformer, surging 4.61% to $593.14 with a $1.51 trillion market cap, per Benzinga Pro.
The new additions are equally staggering in scale. SpaceX opened for trading on Friday at $150 per share and a $1.75 trillion valuation, ranking it among the top 10 publicly traded U.S. companies by market cap.
OpenAI and Anthropic — both expected to go public later in 2026 — are valued at roughly $500 billion and $177 billion, respectively.
Capital Rotation
The catalyst for the reframe is capital rotation.
Vanda tracked the longest retail net-selling streak in the Magnificent 7 since March 2020 ahead of SpaceX’s debut, according to CNBC, and the Roundhill Magnificent Seven ETF (NASDAQ:MAGS) is down 4.73% in the past month.
Investors aren’t abandoning tech — they’re expanding their definition of it. The Magnificent 7 captured the first wave of the AI trade. The FAB 10 may define the next one.
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