Full Breakdown
FAB 10 Emerges as New Benchmark for AI-Driven Tech Giants
6/17/2026, 8:19:35 AM
FAB 10 Emerges as New Benchmark for AI-Driven Tech Giants
SpaceX’s Nasdaq debut on June 12, 2026, which lifted the company to a market capitalisation near $2.9 trillion, prompted analysts to broaden the “Magnificent 7” label that has defined the AI rally. Vanda Research introduced the “FAB 10” (Frontier AI & Big Tech 10), adding SpaceX, OpenAI and Anthropic to the original seven.
Origins of the Magnificent 7
The “Magnificent 7” – Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta Platforms and Tesla – was coined by Bank of America strategist Michael Hartnett in 2023. At the time of reporting, the group’s combined market value was about $22.6 trillion, with Nvidia alone exceeding $5 trillion, accounting for one-third of the S&P 500 index.
Composition of the FAB 10
The FAB 10 consists of the original seven plus:
- SpaceX (aerospace, satellite connectivity)
- OpenAI (generative-AI model developer)
- Anthropic (advanced AI systems provider)
Bank of America floated an “AI Big 10” that substitutes the three newcomers with chipmakers Broadcom, Advanced Micro Devices (AMD) and Micron, reflecting a semiconductor-focused view.
Market Metrics
- Magnificent 7 combined market cap: ~ $22.6 trillion.
- Nvidia market cap: > $5 trillion; share price $211.96.
- SpaceX market cap: $2.85-$2.9 trillion.
- Private valuations: OpenAI $852 billion; Anthropic $965 billion (Index.vn) versus $500 billion and $177 billion in other reports.
- SpaceX IPO raised $85.7 billion, the largest public offering.
Official Reactions
Vanda Research said the SpaceX IPO “offered the clearest signal yet that attention is widening beyond the ‘Magnificent 7’.” Bank of America described its AI Big 10 as a “semiconductor rally”-driven alternative. Market strategists caution that the expanded grouping does not imply the end of the ‘Magnificent 7’, which still dominate the S&P 500.
Skepticism and Gaps
Analysts note that OpenAI and Anthropic remain private, limiting investability. The “MANGOS” label, which omits Apple, Microsoft and Amazon, has drawn criticism for excluding AI infrastructure providers. Sources differ on SpaceX’s valuation ($2.85 trillion, $2.9 trillion, $1.75 trillion at IPO) and on private valuations of OpenAI and Anthropic, reflecting a lack of consensus on the appropriate grouping.
Verbatim Quotes
- “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 Research spokesperson
- “Bank of America has floated an 'AI Big 10' that instead adds the chipmakers Broadcom, Advanced Micro Devices (AMD) and Micron, reflecting the semiconductor rally.” — Bank of America strategist
- “Strategists caution that none of the names signals the demise of the 'Magnificent 7', which still accounts for roughly a third of the S&P 500 index.” — Market strategist comment
- “Both private AI makers filed paperwork confidentially in June to go public this year at valuations potentially north of $1 trillion.” — Index.vn report
Future Outlook
OpenAI and Anthropic are expected to file confidential IPO paperwork in June 2026, with public listings later in the year. ETF issuers have proposed funds tracking the new groupings, suggesting that capital-allocation frameworks may soon reflect the FAB 10 composition.
