The Magnificent Seven mega-cap technology stocks have entered correction territory, defined as a decline of 10% from recent highs.
Fears about the artificial intelligence (A.I.) trade have the stocks of Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) down on the year.
The Roundhill Magnificent Seven ETF (MAGS), an exchange-traded fund that tracks the Magnificent Seven, is down 11% from its peak reached last October.
Amazon and Microsoft have led the declines, with both in bear market territory, defined as a decline of 20% or more from recent highs.
Analysts say that Amazon and Microsoft are being penalized for heavy spending on A.I. without enough cloud-computing growth to ensure that it is money well spent.
Google-parent Alphabet had previously led gains among the Magnificent Seven owing to the strength of its Gemini A.I. model. However, its stock is down 8% over the past month.
Social-media company Meta Platforms has given up all the gains it recorded after its recent financial results that emphasized A.I.-driven growth.
Among the remaining members of the Magnificent Seven, chipmaker Nvidia’s stock has been range-bound for months.
Apple has given up all the gains it achieved on news of strong iPhone 17 sales amid concerns over the price of memory-chips and slow progress on an A.I. upgrade for its digital-assistant Siri.
Tesla’s stock continues to struggle as its electric vehicle sales decline and the company pivots to self-driving cars and robots. TSLA stock is down 5% so far in 2026.
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