'Magnificent 7' stocks are seeing a shocking run: Chart

Brian SozziThu, March 26, 2026 at 5:31 PM UTC

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Even the specter of decades of AI dominance can't spark the "Magnificent Seven" right now.

Every Magnificent Seven stock is down double-digit percentages from its 52-week high, according to data from Yahoo Scout (see chart below).

Microsoft (MSFT) is down more than 30% from its highs after a quarter that showed slowing sales growth rates and big promises of aggressive capital expenditures.

"I'm just not sure that right now is the time to jump in [on the Mag 7] — I think there's a little bit more downside risk to them," Slatestone wealth chief market strategist Kenny Polcari said on Yahoo Finance's Opening Bid (video above).

There are several explanations for the Mag 7 sell-off.

Higher oil prices, driven by Operation Epic Fury, have reignited stubborn inflation, forcing the Federal Reserve to maintain a higher-for-longer interest rate stance. Rates at higher levels for a long period are a natural enemy of growth-oriented tech valuations, as they discount the value of future earnings.

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Mag 7

Meantime, capex commitments to build out AI infrastructure have spooked investors at the start of the year.

Capital expenditures for the four major tech players — Google (GOOGL, GOOG), Microsoft, Amazon (AMZN), and Meta (META) — are expected to exceed $650 billion in 2026, a 60% surge from 2025. Spending at these levels could put downward pressure on profit margins.

And lastly, institutional investors have rotated out of digital growth plays to perceived safe-haven war plays in energy, defense, and domestic manufacturing.

"At some point, they're [Mag 7] going to become a value play," Polcari said. "And so certainly that will raise the interest. But I never owned them. I'm not going to jump in on them now. I just think there's other places for me to put my money."

StockStory aims to help individual investors beat the market.

Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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