Retail investors are pouring into SpaceX shares while the Magnificent Seven loses its shine

SpaceX just pulled off something that even Apple and Nvidia would envy. On its inaugural trading day, the Elon Musk-led rocket company attracted $117 million in net retail buying, according to Vanda Research. That single stock accounted for 56% of all US retail stock purchases that day.

The numbers behind the frenzy

SpaceX has filed confidentially for an IPO with terms set at $135 per share. The company is seeking to raise nearly $75 billion at a valuation of roughly $1.75 trillion.

CNBC described “a rush of retail traders” requesting allocation to SpaceX stock, with demand appearing largely driven by fear of missing out rather than careful fundamental analysis.

Vanda Research has proposed an entirely new market category to capture what’s happening. They’re calling it the “FAB 10,” short for Frontier AI and Big Tech 10. The framework expands beyond the familiar Magnificent Seven, which includes Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla, to incorporate SpaceX, OpenAI, and Anthropic as the next wave of transformative technology leaders.

Why the Magnificent Seven is losing ground

Some hedge funds have reportedly been trimming their Magnificent Seven exposure, pivoting toward new AI and frontier tech plays. That institutional repositioning reinforces the emerging “Mag 7 vs. FAB 10” narrative that Vanda has been tracking.

What this means for investors

The 56% figure from Vanda Research, showing SpaceX dominating retail flows on its first day, suggests concentration levels that would make any portfolio manager nervous. When more than half of retail buying activity piles into a single name at a premium valuation, the historical parallels tend to be cautionary rather than encouraging.

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