Do not be swayed by the noise of Wall Street's "rotating bull market", Mag7 "leading the rise myth" is still the main theme of the US stock market.

Top analysts on Wall Street are all calling 2026 the year of the "Rotation Bull Market". Some institutional investors believe that this rotation panic will not last long, and investors should continue to bet on the seven major tech giants that dominate the high-weighted US stocks. These tech giants are expected to significantly outperform other sectors in 2026 and continue to lead the S&P 500 and Nasdaq 100 indices to new highs. The S&P 500 index is expected to end 2025 strong at historical highs, paving the way for further record highs in 2026. Market leadership has shifted from tech and growth stocks closely related to AI, to undervalued investment sectors such as value, healthcare, materials, etc. While the market rotation is becoming more evident, some institutional investors like JR Research, who successfully predicted that NVIDIA Corporation's market value would surpass Apple Inc.'s at the end of 2022, believe that the rotation will not last too long. They see the AI infrastructure and the AI investment themes of the Mag 7 (the seven major tech giants) continuing to be the strongest themes in the stock market in 2026. Despite the market rotation, the seven major tech giants are expected to continue to provide strong core fuel for the overall earnings growth of the S&P 500 index in 2026. Investors are advised to maintain their exposure to these tech giants, with some suggesting further investments in the AI tech theme that has supported the bull market rally since the bottom of the bear market in 2022. The S&P 500 index has seen a super bull market rally, largely driven by tech giants and companies investing heavily in AI infrastructure, like Micron, Taiwan Semiconductor Manufacturing Co., Ltd., and Broadcom Inc. The seven major tech giants, known as the Magnificent Seven, which include Apple Inc., Microsoft Corporation, Alphabet Inc., Tesla, NVIDIA Corporation, Amazon.com, and Meta Platforms, continue to be the driving force behind the record highs of the S&P 500 index. The market seems to be leaning towards sectors outside of tech, but the core of the S&P 500 index and the Nasdaq 100 index is still deeply tied to the AI theme. The earnings of the Magnificent Seven are expected to grow significantly in 2026, outpacing the rest of the S&P 500 index. These tech giants are seen as having a strong pricing power, operational scale advantage, and high free cash flow, making their earnings growth easier to outperform the market average. In 2026, the market is expected to continue to be dominated by the tech giants, but some caution is advised to ensure that the valuation is justified. The AI investment cycle is still in its early to mid stages, and while some risks of a pullback in large tech stocks are increasing, the situation is not yet at the extreme levels seen during the dot-com bubble.