It’s no longer just about Nvidia or the Magnificent Seven. The real AI-fueled rally has spilled over into energy, cloud, industrials — and it’s just getting started.
The S&P 500 and Nasdaq Composite have climbed back into record territory, fueled not only by the usual suspects like Nvidia and Microsoft but by a growing list of overlooked sectors and second-tier tech stocks.
Since the April 8 market bottom, names like Broadcom, AMD, and Dell have surged 70% or more, while Oracle reached an all-time high on booming AI cloud demand. Energy firms like Vistra (VST) and NRG (NRG) — key suppliers for AI data center power needs — are also up more than 80%.
Wall Street’s prediction of a broadening AI trade is playing out. “It’s an AI bull market, not a Magnificent Seven bull market,” as analysts put it — a sentiment backed by Evercore ISI strategist Julian Emanuel, who noted that the four typical bull-market killers — recession, Fed hikes, bond yield spikes, and overvaluation — are all absent.
Meanwhile, market breadth is improving significantly. According to WSJ, sectors like financials, industrials, and utilities are joining the rally, thanks to diminishing trade fears and speculation that the Trump administration may take a softer stance on tariffs going into Q3.
Meta (+1.04%), Amazon (+2.85%), Google (+2.88%), and Apple (+0.04%) have joined the upward trend, but Palantir (-10.64%) and Tesla (-0.66%) are showing signs of short-term correction or sector rotation.
Analysts also point out the historical pattern of theme-based bull markets: In the 1920s, it was radio and cars; in the 1990s, the dot-com boom. The leading stocks change, but the theme — AI innovation, in this case — persists.
“The rally off April’s lows shows real strength in growth parts of the market,” noted Isabel Wang at MarketWatch, “but also bear-market and counter-trend moves in others.”
Investors chasing alpha in 2025 are increasingly turning to AI infrastructure, utilities, and cloud solutions, not just headline tech stocks. With Wall Street eyeing a continued bull run, the rally’s future may lie in less-hyped but fast-growing corners of the AI ecosystem.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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