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Stock impact report

Prediction: These Mid-Cap AI Stocks Could Outperform the "Magnificent Seven" in 2026 [Yahoo! Finance]

Unity Software Inc. (U) 
Company Research Source: Yahoo! Finance
Kratos Defense & Security and Unity Software could be two AI stocks to put on your radar. 10 stocks we like better than Kratos Defense & Security Solutions › It's no secret that the "Magnificent Seven" stocks have been the primary drivers of the S&P 500 's stellar performance in recent years. In 2025, the Mag 7 delivered a 23% total return, following an incredible 64% gain in 2024 and a 37% rise in 2023. I'll spare you the math. This means that a $10,000 investment in the Magnificent Seven at the start of 2023 would be worth about $27,700 in January 2026. And it's fair to say that the boom in artificial intelligence (AI) investment has been the driving force behind this exceptional performance. However, as we head into the next phase of the AI revolution, it may be better to look for stocks that are a little more under the radar, rather than the trillion-dollar giants. Here are two that could be worth a closer look right now. Kratos Defense & Security (NASDAQ: KTOS) is a le Show less Read more
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