TradingKey - Amid Apple’s delayed progress in upgrading artificial intelligence (AI) features and Tesla’s struggles with electric vehicle price wars and an unclear autonomous driving outlook, Wall Street has long been considering removing the two companies from the elite group of “Magnificent Seven” giants. Some fund managers now argue that semiconductor powerhouse Broadcom and database giant Oracle are better suited to join the top-tier tech cohort.
Vimal Patel, portfolio manager of the Columbia Seligman Global Technology Fund (SHGTX), suggested that investors should now sell shares of Tesla and Apple and rotate into Oracle and Broadcom.
According to Morningstar data, this tech-savvy fund manager has outperformed peers by an average of 6 percentage points annually over the past five years.
Patel laid out his rationale for this revised “Magnificent Seven” lineup:
1. Sell Tesla (TSLA)
Although Tesla has long been a standout name among tech and EV stocks, it now faces increasing competition from traditional automakers and Chinese EV makers. Price wars are pressuring margins.
As for the much-hyped prospects of autonomous taxis and humanoid robots, Patel said their commercial success remains uncertain. “We don't buy hopes and dreams,” he added.
2. Sell Apple (AAPL)
Apple benefits from a loyal user base thanks to its closed ecosystem, but slow iPhone upgrade cycles have frustrated users. Moreover, geopolitical risks — especially potential tariffs — pose significant headwinds for Apple, more so than for other members of the former “Magnificent Seven.”
3. Buy Oracle (ORCL)
The database software leader has shown solid growth momentum in recent years, maintaining mid-single-digit revenue growth. As Oracle expands into cloud computing platforms, cloud revenue is expected to become a key growth engine.
Company executives project that Oracle’s cloud revenue could surge by 40% over the next 12 months, potentially positioning it as one of the world’s largest cloud application and infrastructure providers.
4. Buy Broadcom (AVGO)
Unlike NVIDIA’s highly programmable chips, Broadcom specializes in Application-Specific Integrated Circuits (ASICs), which offer customized solutions for hyperscalers at lower cost and power consumption.
In the last quarter, Broadcom’s AI chip revenue grew 46% year-over-year, contributing to a 20% rise in total revenue. The company expects AI chip revenue to grow by around 60% in the next quarter.
5. Keep the Remaining Five Giants:
- NVIDIA will continue to benefit from strong demand for AI products from companies like Microsoft.
- Microsoft and Amazon maintain solid growth prospects in AI-related cloud services.
- Meta is poised to benefit from AI-driven advertising.
- Google (Alphabet) will see stable ad revenue growth supported by resilient macroeconomic conditions.
Performance YTD (as of 2025):
- Apple: Down 14.72%
- Tesla: Down 21.91%
- Oracle: Up 42.41%
- Broadcom: Up 18.69%
This evolving reshuffle reflects shifting investor sentiment toward companies with clearer AI-driven growth trajectories and stronger profitability in today’s competitive and macro-sensitive environment.
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