Not So Magnificent

Is the Only Trade That Matters over?

For over a year, the Magnificent Seven mega-cap tech stocks at the top of everyone's lists have started to go their own way. They have not moved as a tight group the way they did in prior years — and only Alphabet (GOOGL) and Nvidia (NVDA) managed to outperform the S&P 500 benchmark through 2025, while Apple, Microsoft, Amazon, Meta, and Tesla all lagged the broader market’s ~16% return and have remained stuck in neutral or weaker performance as of early 2026. 

Investor sentiment has noticeably cooled relative to the heady “buy anything tech” mindset of recent years. Many investors have grown disappointed that stellar earnings and AI narratives haven’t translated into broad gains across all seven names — particularly for names like Apple and Tesla that have lagged, and Amazon that has been among the weakest performers — and this has encouraged a more selective approach rather than blind faith in the Magnificent Seven as a group. 

Is the AI-driven rally really maturing? Are valuation concerns real? It is clear that some investors want more tangible evidence of growth rather than just hype. That shift has driven some capital into smaller-cap or non-mega tech areas and has made the S&P 500 look decent in comparison.

Alphabet can't do all the work!