The non-Magnificent Seven stocks most backed by US fund managers.

Trustnet reports that Broadcom is the most-held non-Magnificent Seven stock among IA North America funds, appearing in the top 10 of 135 funds (47.7%). JP Morgan ranks second with 69 funds, followed by Eli Lilly and Visa at 45 each; Berkshire Hathaway sits fifth with 36. The piece is primarily a positioning snapshot rather than a new company-specific catalyst, though it highlights Broadcom's strong AI demand backdrop and Eli Lilly's earnings strength.

Analysis

The key signal is not simply “non-Mag 7 breadth,” but that active managers are still clustering around a narrow set of quality-growth and financial compounders while leaving true cyclicals largely unowned. That creates a second-order setup where AVGO, JPM, V, MA and even JNJ can behave like de facto defensive growth proxies if macro volatility rises, because they sit in the overlap between benchmark durability and active conviction. The market is effectively paying for perceived earnings visibility, not just earnings growth, which can keep these names bid even if index-level breadth weakens.

AVGO stands out as the cleanest positioning beneficiary because its ownership is high enough to validate the AI trade but not so crowded that marginal buyers are exhausted. The risk is that the market is already extrapolating multi-year AI capex, so any delay in enterprise digestion or 2027 ramp timing could compress multiple faster than fundamentals roll over. JPM is the best “sleeping giant” in this set: bank positioning is still under-penetrated relative to its earnings power, so a stable rates/credit backdrop can force catch-up buying, while a credit wobble would hit the whole active-financials complex at once.

The most interesting contrarian angle is that the list implies underowned defensives are being ignored rather than cheapened: XOM, CSCO and WMT are still not consensus core holdings despite their cash-flow resilience. If growth leadership broadens, these names may lag; if the market de-risks, they can outperform on flows alone even without earnings acceleration. That suggests the current setup favors a barbell: own the highest-conviction quality compounders, but pair them against lower-multiple non-core cyclicals rather than chasing the crowded mega-cap names.

For the medium term, the trend reverses only if either AI spend disappoints, credit losses rise, or healthcare pricing pressure turns more acute. Until then, the marginal dollar still wants liquidity, balance sheet strength, and visible buybacks — all traits concentrated in this basket.

Key Decisions for Investors

• Long AVGO vs short a basket of lower-quality semis/equipment suppliers over the next 1-3 months; thesis is that AI monetization remains the cleanest institutional growth anchor while supply-chain names need proof. Risk/reward: ~2:1 if AVGO prints another guide-up cycle; stop if AI capex commentary turns cautious.
• Initiate a JPM long on any 2-3% pullback for a 3-6 month horizon; the setup is catch-up ownership rather than fresh fundamental discovery. Risk/reward improves if the market starts pricing a softer landing and stable charge-offs.
• Pair long WMT / short XLY or another discretionary basket into any macro slowdown over 4-8 weeks; WMT is still underowned relative to its recession-resilience and can benefit from defensive rotation. Downside is modest if consumer data stays firm.
• Use call spreads on MA or V rather than outright longs over 2-4 months; both are quality duration, but ownership is broad enough that upside is more about market beta than idiosyncratic re-rating. Prefer spreads to limit drawdown if rates back up.
• Add JNJ or XOM only as hedge sleeves against a growth-led portfolio, not as standalone return drivers; they can outperform on flow shocks, but the catalyst set is weaker absent a risk-off tape.