AI Rally Expands Beyond Traditional Leaders
A JPMorgan strategist says that the AI rally is expanding beyond its traditional leaders, known as the Magnificent Seven. The strategist, Stephen Parker, argues that while these companies have barely budged this year, markets are hitting new highs due to a broader shift in market leadership.
Parker notes that infrastructure providers are now driving the AI rally, with companies such as Quanta Services and GE Vernova posting record backlogs. These companies are benefiting from increased investment in electric grids, power generation, and mission-critical infrastructure.
Eaton and Cisco Systems are also benefiting from the AI super cycle, with Eaton's data-center sales up 65% year-over-year and Cisco booking $9.3 billion in AI infrastructure orders for FY2026.