The Financial Times has called the end of the Magnificent Seven as an investment concept
Source: Mr Family Office
Mag 7 stocks are now trading near their cheapest valuation in history relative to the S&P 500
Source: Barchart, Bloomberg
Goldman: "We are seeing a clear theme of buying Hyperscalers vs selling Semis as our Mag7 basket is outperforming NDX by nearly 3%.
Momentum (memory) drawdown continues with our pair basket (GSPRHIMO) down another -6.5% today despite the modest reprieve yday, taking MTD performance to -24% (worst month since April 2009)"
Only 2 months left to buy the Magnificent 7 before the cash flow explosion begins???
Source: Patient Investor @patientinvestor FT
The Magnificent 7 just lost nearly $3 TRILLION in market value.
June is shaping up to be their worst month on record. The Roundhill Magnificent Seven ETF ($MAGS) has plunged -12.9% month-to-date, including -5.9% this week alone. But this isn't just another tech selloff. Apple has raised MacBook prices. Microsoft has increased Xbox prices. Both point to the same culprit: rising memory costs driven by the AI infrastructure boom. For the first time, AI CapEx is flowing through the entire value chain and showing up in consumer prices. Now investors are asking a different question How long will markets keep rewarding record AI spending before demanding stronger returns? If confidence fades, the market won't just reprice Big Tech. It will start pricing in AI CapEx cuts. That would lower growth expectations for hyperscalers, hit semiconductor demand, and could trigger a much broader market selloff. The AI trade has been built on ever-higher investment. What happens if Wall Street starts expecting less? This is a key downside risk to monitor. Which also means that you need to be broadly diversified. Source: Dow Jones, Global Markets Investors
The Mag 7 continue to hit new 52-week lows relative to the broader market.
Source: Alfonso De Pablos, CMT
The Mag7 as a source of cash to fund the Semiconductors $SOX trade?
The SOX/MAG ratio continues exploding higher and is now trading at its highest level since 2019. The move has been nothing short of spectacular, reinforcing the idea that semis have become the market's preferred AI expression. Source: TME
From Mag7 to MANGOS
Source: Evan
