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
Surprise surprise... The Magnificent 7 have underperformed the S&P 500 market-cap and equal-weight indexes this year.
That pushes back on the narrative that the bull market is top-heavy. Breadth continues to expand and the rally isn't as fragile as the bears say. Source: Phil Rosen
Hedge funds are offloading Magnificent 7 stocks at an UNPRECEDENTED pace:
Hedge fund net exposure to the Mag 7 is down to ~17% of total North American net exposure, near the lowest in 3 years. At the same time, the top-most purchased stocks by retail investors last week were Alphabet, $GOOGL, at +$273 million, Micron, $MU, at +$243 million, and Tesla, $TSLA, at +$234 million. This was followed by Meta, $META, at +$210 million and Intel, $INTC, at +$197 million. This means hedge funds are effectively offloading Mag 7 exposure directly to retail buyers. Wall Street is dumping tech stocks to retail. Source: Global Markets Investor, Morgan Stanley
