Mag 7 Trail Nasdaq's 16% Gain as Meta Tops Expert Picks
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- Magnificent 7 index gained just 1.7% year-to-date in 2026, sharply trailing the Nasdaq 100's 16% rise and the S&P 500's 10% climb as investor preferences shifted toward chipmakers such as Micron Technology and Sandisk
- DataTrek Research co-founder Jessica Rabe wrote on June 30 that the Mag 7's 40-day correlation to the Nasdaq 100 dropped below 0.7 — its lowest since 2017 — after peaking above 0.95 in April, putting the relationship back to 2015 levels when these names were only 10-11% of the index
- Viram Shah, founder and CEO of Vested Finance, said the buy question is now 'really 7 separate questions,' noting Alphabet has done well while Microsoft and Meta have struggled even though their underlying businesses remain strong
- Meta earned the top pick from Santosh Meena, head of research at swastika investmart, who cited a forward P/E of 17-22x, robust ad revenue growth, rising engagement via Threads, and clear AI monetisation upside alongside strong free cash flow for buybacks and dividends
- Nvidia remains the preferred choice for investors seeking pure AI growth despite a high stock price and rising competition, while Microsoft offers stability, Alphabet has the most attractive valuation, and Apple and Amazon are growing more slowly
- Tesla continues to face valuation and execution challenges, making it the weakest performer in the grouping
- For Indian investors specifically, the recommended order is index funds first and individual stocks second, adding only money an investor can sit through in a 20-30% drawdown
Why it matters: The Mag 7's correlation with the Nasdaq fell below 0.7 — its lowest since 2017 — meaning the group no longer moves as a single bloc and a buy-the-index strategy captures less of their sway than it did a year ago, while expert consensus narrows on Meta as the best pick based on a 17-22x forward P/E and stated AI monetisation upside.
