As the Magnificent 7 lose swagger, which stock should you buy now? Experts reveal the right strategy
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- Magnificent Seven index has gained just 1.7% in 2026, sharply trailing the Nasdaq 100 (up 16%) and the S&P 500 (up 10%)
- Mag 7's 40-day correlation with the Nasdaq 100 fell from above 0.95 in April to below 0.7, its lowest reading since 2017, per DataTrek Research's Jessica Rabe
- Rabe noted big tech and the S&P 500 are now moving together 'about as little as they were in 2015,' when the same names were only 10-11% of the index
- Chipmakers including Micron Technology and Sandisk have emerged as top performers as investor focus shifts away from the Mag 7 basket
- Santosh Meena of swastika investmart singled out Meta as offering the best risk/reward, citing a 17-22x forward P/E, rising Threads engagement, and AI monetisation upside
- Viram Shah of Vested Finance told Indian investors to prioritize index funds first and treat any individual Mag 7 stock pick as a small, 20-30% drawdown-tolerant overlay
- Viram Shah added that stock selection within the Mag 7 is now essentially '7 separate questions,' with Alphabet outperforming while Microsoft and Meta's businesses remain strong even as their stocks have struggled
Why it matters: The collapse in Mag 7 correlation means investors can no longer treat the group as a single trade — selection within tech now matters as much as sector exposure. Meta's 17-22x forward P/E contrasts with Nvidia's premium valuation, and the chipmaker rotation means capital is still chasing AI but flowing to different plumbing.
