Beyond the Mag Seven: 5 S&P 500 Stocks Quietly Betting Big on AI
After the Mag Seven stocks stumbled, earning the nickname 'Bag Seven,' savvy tech investors are looking elsewhere. According to MarketWatch, five S&P 500 companies are quietly ramping up AI investments, including Salesforce, ServiceNow, Visa, and Costco.
The "Mag Seven" has become the "Bag Seven." Sharp tech investors are looking elsewhere. According to a report from MarketWatch, five S&P 500 stocks are quietly going all in on artificial intelligence, offering a less volatile way to play the AI theme.
Details
The five companies highlighted are:
- Salesforce (CRM): Investing in AI tools for customer relationship management.
- ServiceNow (NOW): Integrating AI into workflow automation platforms.
- Visa (V): Using AI for transaction analysis and fraud prevention.
- Costco (COST): Applying AI to supply chain and inventory management.
- A fifth company not named in the summary.
These companies are not as flashy as Nvidia in their AI announcements, but they are spending heavily on AI technologies to improve efficiency and drive revenue.
Context
The "Mag Seven" refers to mega-cap tech stocks (Apple, Microsoft, Nvidia, Amazon, Meta, Alphabet, Tesla) that dominated markets in 2023-2024. However, in 2025-2026, some have underperformed, leading investors to seek AI exposure through more diversified, value-oriented names.
What This Means for Investors
These stocks offer AI exposure with potentially lower volatility than pure-play tech names. However, investors should evaluate each company's AI strategy and execution, as returns may take time to materialize.
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