By Adam Clark

The Magnificent Seven are all being moved by artificial intelligence again. Except this time, they're sinking on fears about AI rather than rising on hopes about the new technology.

The Roundhill Magnificent Seven ETF, an exchange-traded fund which provides equal-weight exposure to the so-called 'Mag 7' large technology companies, closed in correction territory on Thursday, down nearly 11% from its high in late October. It was edging lower again ahead of the open Friday. Investors are rotating to different sectors and even overseas markets.

"Focusing solely on the US information technology sector is unlikely to fully capture the direct beneficiaries of AI. With meaningful value creation also occurring elsewhere, we recommend diversification across sectors and geographies," wrote Mark Haefele, chief investment officer for global wealth management at UBS, in a research note on Friday.

Amazon.com and Microsoft have led the declines, with both now entering 'bear market' territory, meaning they are down more than 20% or more from their recent highs. Both have been penalized for heavy spending on AI investment without enough cloud-computing growth to satisfy investors that it is money well spent.

However, now some of the Mag 7 stocks which had previously defied the downturn are also suffering. Google-parent Alphabet, which has been lauded for its Gemini AI and growth in its cloud unit, is now down 6.4% over the past month.

Social-media company Meta Platforms has given up all the gains it recorded after its recent earnings, which highlighted AI-driven growth, and is only just above the level which would mean it is entering a bear-market itself.

Among the remaining members of the large-cap tech grouping, chip maker Nvidia has been essentially range-bound for months, while Apple has also given up the gains prompted by strong iPhone 17 sales amid concerns over the price of memory-chips and slow progress on an AI upgrade for its digital-assistant Siri.

Tesla has been a consistent outlier in the Mag 7 as it moves more on investor belief in CEO Elon Musk's plans for robotaxi and robot deployments. Tesla is down 7.3% this year so far.

Write to Adam Clark at adam.clark@barrons.com

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February 13, 2026 07:44 ET (12:44 GMT)

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