15 AI stocks to watch outside of the Magnificent 7

Yahoo

21-06-2025

Some investors may be wondering if they missed out on Nvidia's (NVDA) artificial intelligence (AI) run.
Futurum CEO Daniel Newman joins Morning Brief to highlight 15 alternative AI plays, including Broadcom (AVGO), Palantir (PLTR), and Oracle (ORCL), that could benefit from the next wave of custom chip demand.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
According to the Bank of America Global Fund Manager survey, Long Mag 7 is one of the most crowded trades on Wall Street, but my next guest has some alternative ways to play artificial intelligence.
I want to bring in Dan Newman, who is the Futurum CEO.
Great to have you here back in studio with us.
Brad, good to see you.
So let's talk about this because a lot of people have already piled into Mag 7, but.
You believe that there are other places that are non-MG 7 that they could find some exposure to generative AI and this broader kind of thesis that's driven the market for the past two years.
I mean there's been nothing that is, you know, deemed more attention than AI.
You've seen just the news in the last couple of days, whether it's Microsoft wanting to, or sorry, Meta offering hundreds of millions of dollars to potential researchers to join.
Their AI talent team or you know you saw Marvel came out yesterday with the custom AI silicon road map and their stock is popping.
We could probably talk a little bit about that, um, but you're seeing it really across the board and then of course so many people have kind of felt like, well did I miss Nvidia and so the the the question I get asked most by, you know, by clients, by the, by retail investors and why we basically launched the Future on AI 15 which.
Is the extended list beyond is what else is out there besides maybe Nvidia, Microsoft, and Meta.
What are the plays, you know, and so you can hear about kind of what are the difference difference makers.
So for instance, uh, companies like Evago, you know, Broadcom, um, you know, there's a $500 billion t we believe in the next 4 years for custom AI silicon, um.
Nvidia's gonna get a lot of that, you know, Nvidia gets 92% of that market right now, we believe, but they're not going to keep 92% in our opinion.
They're probably gonna fall to maybe 80%, 70%.
So it still means Nvidia, by the way, can triple to $300 billion.
There's gonna be $100 billion that's gonna go into custom.
And so we have Avago, for instance, as our number two name to play because that $100 billion dollar opportunity that sits with the Google custom chips they're doing, it sits with custom chips that companies like OpenAI are planning to do.
So that's one of the plays of course you've seen uh Brad TSMC.
TSMC, you know, people think about it as a foundry and of course it's a very big name and there's a lot of dollars invested in it right now, but people don't always make that connection that whether it's invi making chips, metama chips, Microsoft and Amazon doing their custom chips, all of them are dependent right now on TSMC and as much as I think the US needs a strong intel, we aren't there yet.
So right now TSMC.
All the pricing power so it sits at the very top of our list.
And then there's some eclectic names.
I'll pause here, but basically there's eclectic names like Oracle that we put on there.
You saw what a pop they've gotten, but they've absolutely nailed this AI transformation and they are in a perfect position.
And just yesterday, XAI and Oracle made a big announcement together that they're going to be using Oracle's infrastructure to train XAI models.