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The Magnificent Seven may be getting most of the credit for driving the S&P 500 to ever greater heights this year, but investors\u2019 obsessions with this small group of big name tech stocks may be wearing off, according to Bank of America<\/a>.<\/p>\n The Magnificent Seven\u2014the movie-inspired name for Alphabet<\/a>, Amazon<\/a>, Apple<\/a>, Meta, Microsoft<\/a>, Nvidia<\/a>, and Tesla<\/a>\u2014have been responsible for a good portion of the S&P\u2019s big surge this year, with Nvidia alone accounting for a third of the S&P\u2019s gains. But BofA analysts expect the \u201cOther 493\u201d to get in on more of the action as second quarter earnings get underway.<\/p>\n \u201cGrowth is broadening out and so should the market,\u201d analysts Ohsung Kwon and Savita Subramanian wrote earlier this week.<\/p>\n In fact, for the non-Magnificent Seven stocks, earnings growth is forecast to be 6% annually over the second quarter of 2024, 7% over the third, and 13% over the fourth. At the same time, BofA expects growth for the Magnificent Seven to stall in the second quarter, meaning overall, the analysts expect \u201ca typical 2% beat\u201d for S&P 500\u00a0earnings per share<\/a>\u00a0in the second quarter, \u201cin line with the historical average\u201d but the smallest since the last quarter of 2022.<\/p>\n BofA explains that while tech companies cut costs\u2014through layoffs and other avenues\u2014in 2023, allowing their earnings to recover, the other 493 are starting to lay off more workers now, \u201cwhich suggests that there is more cost cutting to be had in the non-Tech space,\u201d the analysts write. <\/p>\n \u201cWe believe the cost cutting efforts should lead to better margin upside for the other 493 in 2024-25,\u201d they continue.<\/p>\n Alphabet, Amazon, Apple, Microsoft, Meta, and Nvidia have all outpaced the S&P 500 since the start of the year, with Tesla falling short but picking up stream in recent days<\/a>. The dominance of such a small group of companies has some investors worried<\/a>. As noted at the end of June by Apollo Global Management<\/a>\u00a0chief economist Torsten Sl\u00f8k, the\u00a0top 10 companies<\/a>\u00a0in the index make up 35% of the market cap and 23% of the earnings. That makes the\u00a0S&P 500 \u201cmore vulnerable\u201d<\/a>\u00a0than it has in decades.<\/p>\n \u201cThe problem for the S&P 500 today is not only the high concentration but also the record-high bullishness on future earnings from a small group of companies,\u201d Sl\u00f8k wrote.<\/p>\n<\/div>\n\nSubscribe to the Fortune Next to Lead newsletter to get weekly strategies on how to make it to the corner office. Sign up for free<\/a>.<\/div>\n<\/div>\n