Explosive Growth Ahead? What the May 7 Market Shift Means for AI Stocks
Editor’s note: “Explosive Growth Ahead? What the May 7 Market Shift Means for AI Stocks” was previously published with the title “AI Stocks Could Explode After the May 7 Market Shakeup” in April 2025. It has since been updated to include the most relevant information available.
What happens when you mix the most transformational technological megatrend of our lives (AI) with arguably the most ambitious U.S. president we’ve ever seen (Trump)?
You could ignite a $7 trillion Summer Panic in the markets… the sort of surge that we haven’t seen since the 1997 internet boom.
And we think that panic could unfurl as soon as next week, on May 7, when the White House is expected to kickstart an AI acceleration.
In short, investors are sitting on a record $7 trillion in cash, waiting for the opportunity to jump in. Private equity alone is holding at least $2.62 trillion, according to S&P Global Market Intelligence.
That means we could see an enormous return of this cash to the stock market this summer.
Because here’s the truth: What we’ve seen in 2025 isn’t the stock market’s first “crash” in recent years.
The 2010 Flash Crash. 2011’s U.S. debt ceiling downgrade, the 2015 yuan devaluation, and 2018’s Fed hike panic. The 2020 Covid crash and ‘22’s inflation meltdown.
All were buying opportunities for those who knew where to look.
In fact, it was during many of the last decade’s stock market crashes that I nailed the rise of the “Magnificent 7” stocks…
Finding Opportunity Amid the Market Volatility
Amid the commodity crisis of the mid-2010s, I picked out Meta Platforms Inc. (META), Apple Inc. (AAPL), Amazon.com Inc. (AMZN), and Microsoft Corp. (MSFT) as long-term winners. All four have recorded max gains of somewhere between 800% and 1,000% since.
Then, in February 2018, the stock market found itself in one of its fastest 10% corrections ever. On the other side of that plunge, I pinpointed Google as a long-term winner. It went on to soar nearly 300%.
And in the summer of 2019, stocks were stuck in another small selloff. That’s when I homed in on Tesla Inc. (TSLA) and Nvidia Corp. (NVDA) as great plays. Since then, Tesla has recorded a max gain of more than 3,700%, while Nvidia has shot up as much as 4,000%.
In other words, I called the Magnificent 7 before they were the Mag 7, and I did so during periods of elevated market volatility.
I don’t say this to brag but, rather, to highlight a truth that people often forget: Volatility creates opportunity.
Every selloff feels scary in the moment. But in hindsight, it’s clear to see that it was a blessing in disguise.
This time will be no different.
Beneath the surface of today’s market chaos, the next great tech rally is forming… but not in the Mag 7 stocks. Those are yesterday’s trades – not tomorrow’s big breakout.
In this new wave, the biggest winners will be what I’m calling the “MAGA 7.” I’m talking “Make AI Great in America” stocks.
The MAGA 7: AI Stocks Set to Soar From the Next Market Shock
AI is already very good in the United States. But in the next phase of the AI boom, it will become great. We will Make AI Great in America (MAGA) over the next few years.
My MAGA 7 are seven smaller AI stocks to watch – several of which you’ve likely never heard of – that are about to ride a wave of federal funding, corporate spending, and reshoring urgency into the spotlight.
These companies are building the tools. Laying the fiber. Supplying the chips. Automating the factories. And powering the intelligence behind America’s next great tech renaissance.
Very few are watching them right now. But after the panic hits on May 7, everyone could be.
And if you get in before that moment…
Well, you know how this story goes.
Amazon in 1998, Nvidia in 2015, Tesla in 2019.
This is a rare chance to harness a massive market windfall.
According to McKinsey, generative AI could add up to $4.4 trillion to the global economy annually.
Meanwhile, the Biden administration has already committed over $140 billion toward U.S. semiconductor and AI-related infrastructure. With Trump likely to double down on reshoring and defense-grade AI, this opportunity could expand exponentially.
Of course, not every tech wave results in lasting gains; the 2000 crash taught us that. But today’s AI leaders are backed by real earnings, transformative use cases, and government contracts – not just clicks and eyeballs.
And just a few days ago, I held an urgent briefing to help you get positioned for more AI stock profits.
We delved into:
- The $7 trillion market panic that could ignite on May 7…
- The real reason Trump’s actions are tied to the AI Boom…
- And the MAGA 7 stocks that I believe could soar as this chaos turns into opportunity.
Remember: Volatility creates opportunity.
Now’s your chance to seize it.
Learn more about The 2025 Summer Panic to get ahead of what’s coming next week.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Questions or comments about this issue? Drop us a line at langofeedback@investorplace.com.
