Magnificent Seven Stocks Tumble 3.1% Year-to-Date as Investors Rotate to Chip Makers

Through Friday, the Magnificent Seven stocks—including Nvidia, Microsoft, Amazon and Meta—have fallen an average of 3.1% year-to-date, significantly underperforming the S&P 500's 8.7% gain. Microsoft declined 18.1% in June alone, tracking toward its worst monthly performance since late 2000, while Meta fell 11%, Amazon dropped 11.2%, and Apple slipped 9.7%.

Market participants have shifted capital away from major AI spenders toward semiconductor equipment suppliers such as Micron Technology and Intel, with analysts citing increasing shareholder pressure to justify artificial intelligence investment costs. The rotation reflects broader uncertainty about the profitability of the AI boom, even as chip makers tied to AI infrastructure demand continue to gain.