Move Over, Magnificent 7, There’s a New Stock Basket in Town
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Who are the stocks included in the 'AI 11' basket?
mag 7 was so 2023 today on motley fool hidden gems investing welcome to motley fool hidden gems investing i'm your host tyler crowe and today i'm joined by longtime full contributors matt frankel and travis hoyum who's pulling in some spot duty uh away from the host chair and doing some actual hard-hitting analysis for us today uh we are going to get into the state of athletic wear with some earnings results coming out of Nike, on Holdings, and some others. We're going to get into a listener question on gambling stocks. Travis, guys, is it gambling stocks, gaming stocks, sportsbooks? How are we supposed to call these things these days?
Yeah, the gaming word is what I would normally use if you're talking to people in the gaming industry. But that really gets confusing with games themselves. So gambling is probably the right way to go.
I feel like we're just going mask off now and just be like, they are gambling stocks. Let's not try to hide anything anymore. But we're going to start today with what we're saying. The headline is basically, move over the MAG-7. We got a new moniker now. It's the AI-11. Yardeni Research put out a note yesterday as... research companies love to do when we're talking about stocks and dissecting things, is they put out a new moniker, what they're calling the AI11. This is basically a basket of stocks that are tied to the infrastructure build-out. And I think if you squint really hard, it's basically a semiconductor sort of basket, if you will. We've got semiconductors in memory with SanDesk, Western Digital, Micron.
We've got Chipmakers, Intel, Samsung, AMD, Marvel Technologies, Taiwan Semi, Broadcom. I can't also forget SK Hynix and ASML as well. So that's the 11 stocks we're talking about here today. Kind of a fun little pivot to what we normally talk about, because this is obviously a play to drum up their name for themselves in terms of new ideas for people to get investing in. And we could chalk this up to a silly Wall Street game and short-term thinking. But I think there's something worth exploring here. And it's the idea of picking baskets of stocks versus individual stocks in thematic investing. When a trend has longer-term catalysts, and we can debate the AI infrastructure build on the length of it, I think, for days, do you think it's better in those instances to invest in a basket or individual companies within that trend?
And Travis, I'd love to get your thoughts on this as the analyst guest today.
The answer can be both. I think this is what makes investing both fun and challenging is that I think we really like to look at those individual companies. So I would love to say, hey, I'm going to be able to pick the winner in any given space. But the reality isn't something I've learned over decades of investing at this point is you can get the theme right, the industry trend right, and get the individual stock wrong. So I think the idea of using baskets is not a bad idea. I don't know if this is necessarily the best basket to be buying right now in May, 2026, but it definitely tells a story about what's going on with the market.
Yeah, first of all, I don't know how you can call this the AI11 without NVIDIA being included in the basket. I don't know.
It's about time we had- Well, they're part of the Mag7, Matt. I mean, come on, we got new names, new ideas here. Come on.
I know that they're trying not to have overlap, but even so, you can't call it the AI11. So it's about time we had a new top stocks basket. It seems like the FANG thing was so long ago. The Mag7, it's been the market's gold standard for several years. To really answer your question, I like the basket approach, but tend not to just include the stocks at the top when I'm forming a basket, whether it's fintech, whether it's real estate, all the things that I focus on. Now, in recent years, it hasn't been the best strategy, if I'm being fair. The MAG7 has clearly outperformed all the mid-cap and small-cap baskets of tech stocks I could have made. I'd expect the 11 stocks in this particular basket to
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