How The Rise Of Frontier Tech Baskets Could Impact Equities

The FAB 10 and MANGOS equity baskets have garnered attention as investors rotate into frontier tech favorites such as SpaceX, and eye Anthropic and OpenAI’s IPOs. Amid potential market rotations, Single Stock futures offer a new way for market participants to manage risks tied to some of the biggest tech names. Single Stock futures liquidity is on the rise with daily volume reaching 53.6K contracts on August 4, just over a week since launch.

When SpaceX (SPCX) launched its Initial Public Offering (IPO) in mid-June, the so-called FAB 10 and MANGOS stock baskets that have been taking over Wall Street drew unprecedented amounts of capital. Roughly $370 million flowed into the space company's stock, with the bulk of that sum rotating out of the Magnificent 7 mega-cap group, according to Vanda Research. During that same period, investors were net sellers of Apple (AAPL) and Tesla (TSLA) and bought only $88 million of Nvidia (NVDA), added the London-based firm.

SpaceX’s $75 billion debut triggered "the longest streak of retail net selling in the Magnificent 7 since March 2020," with the Roundhill Magnificent Seven ETF falling over 4.73% in the month prior to the world’s biggest IPO, Vanda Research analyst Viraj Patel wrote in a note.

The Vanda-coined FAB 10 (Frontier AI & Big Tech 10) acronym expands on the Magnificent 7 to include Elon Musk’s space exploration and next-gen AI entity as well as conversational AI favorites Anthropic and OpenAI, which are expected to launch their own IPOs in coming months. Meanwhile, MANGOS has gradually emerged to reflect the latest shift from consumer media and internet services to AI infrastructure and advanced computing. It stands for Meta (META), Anthropic (ANTHRO), Nvidia, Google/Alphabet (GOOGL), OpenAI (OPENAI) and SpaceX, seemingly serving as the next iteration of the FAANGs group (Meta, Amazon (AMZN), Apple, Netflix (NFLX) and Google/Alphabet).

All Eyes on Anthropic, OpenAI Strategists say the new super-tech cohort is here to stay and may trigger major capital rotations out of the Magnificent 7 and other legacy tech groups in the coming year.

The next shift could come from Anthropic and OpenAI's potential listings, which could arrive in the next six months at $1.13 trillion and $847.96 billion respective valuations. Anthropic’s tentative timeline is October this year. OpenAI, meanwhile, is expected to float later this year or in early 2027.

A protracted decline in SpaceX's shares, however, as well as a possible deterioration in technology sentiment for the rest of the year, could cast a shadow or postpone the listings, some strategists said.

Other AI firms are also planning IPOs in the near-to-medium term, with Chinese platform DeepSeek potentially launching in early 2027, possibly followed by Canadian enterprise AI entity Cohere and U.S. chatbot company Perplexity.

AI Spending Woes Rising AI spending – and whether it will translate into higher corporate profits – is also a mounting concern that could fuel volatility.

Tech giants such as Alphabet, Microsoft (MSFT), Amazon, Meta and Oracle are pouring over $800 billion into AI data centers this year, with the 'hyperscalers' planning to add more than $1.2 trillion next year, according to Morgan Stanley. In 2027, that's expected to outpace their free cash flow (net cash after operations and capital expenditures), meaning "data centers are increasingly running on borrowed money," wrote New York Times columnist Jeff Sommer.

"Everyone is getting a little concerned about all the money that's being spent on AI," added Edmondson. "Is ...