Magnificent Seven tech giants losing collective grip as AI priorities and China exposure divide mega-cap strategies
• The "Magnificent Seven" group of mega-cap tech stocks, which once dominated the market, is losing its grip as fortunes diverge between members • Analyst Mike O'Rourke, who coined the "Magnificent Seven" term, says the era of the group rising together is ending • Some stocks like Nvidia are soaring on AI hype, while Tesla has struggled on EV demand concerns • The group once accounted for a stunning 88% of market gains, but that has dropped to 45% amid a broadening rally • Diverging AI strategies and China exposure are leading the mega-caps down different paths, with a rebrand likely needed