AI Investing Beyond the Magnificent 7: Why Diversification Matters

Rich Stoeckel | 07.21.26

Key Takeaways

AI is Driving Growth Across Multiple Industries: Artificial intelligence relies on a vast ecosystem that includes semiconductor manufacturers, data centers, energy providers, networking equipment, and infrastructure, not just software companies.

Strong Growth Doesn’t Eliminate Risk: Technology companies continue to post impressive earnings, but high valuations indicate that investors already have significant expectations for future growth.

Diversification Remains Essential: Rather than trying to predict which AI companies will emerge as long-term winners, investors may benefit from maintaining a diversified portfolio that can participate in innovation while managing risk.

How Artificial Intelligence Is Changing the Investment Landscape

Artificial intelligence is one of the most significant investment themes of our time, but the opportunity extends well beyond a handful of large technology companies. In this market update, Rich Stoeckel, Associate Portfolio Manager at Boyum Wealth Architects, examines the AI value chain, from semiconductors and data centers to energy, infrastructure, and software, and explains how AI is creating opportunities across the broader economy.

Rich also explores why technology stocks have delivered strong earnings growth, how elevated valuations reflect investor expectations, and why diversification remains a critical component of a long-term investment strategy. While AI has the potential to reshape industries for years to come, history suggests that transformational technologies often experience periods of volatility before delivering lasting value.

Whether you’re interested in AI, market trends, or building a resilient investment portfolio, this update provides valuable perspective on one of today’s most talked-about investment themes.

Frequently Asked Questions

What is the AI value chain?

The AI value chain includes the entire ecosystem that supports artificial intelligence, from semiconductor manufacturers and data centers to cloud computing providers, energy companies, software developers, and businesses adopting AI technologies.

Are the Magnificent 7 the only way to invest in AI?

No. While the Magnificent 7 have been major beneficiaries of AI growth, investment opportunities also exist in companies that provide the infrastructure, equipment, energy, and services that make AI possible.

Why is diversification important when investing in AI?

AI is a powerful long-term trend, but no one can predict which individual companies will emerge as the biggest winners. A diversified portfolio can help investors participate in innovation while reducing the risk of relying too heavily on a single company, sector, or investment theme.

Meet the author

Rich Stoeckel

Rich has experience with major firms in the finance industry, including J.P. Morgan in Chicago and with New York Life in their Manhattan office. He holds degrees from Loyola University in Chicago (BBA ’21, MSF ’22) and is working towards completion of the CFA charter. As associate portfolio manager, he works directly with Tyler to align client’s capacity and willingness for investment risk with long-term investment goals.

Rich believes strongly in leading by example, and in the power of small actions that can make a large difference. He enjoys helping people reach their goals and opening doors to different possibilities.

Outside of the office, Rich enjoys reading and writing about various philosophy topics, being introduced to and composing new music, volunteering for Crisis Text Line as a Crisis Counselor, and strength training at his local gym.