Wall Street Firms Urge Buying Magnificent Seven Dip as MAGS Stalls in 2026
Updated
Updated · Business Insider · Jul 6
Wall Street Firms Urge Buying Magnificent Seven Dip as MAGS Stalls in 2026
3 articles · Updated · Business Insider · Jul 6
Summary
Morgan Stanley, Goldman Sachs and Empower are telling clients to add Magnificent Seven exposure after the group lagged badly in 2026, with the Roundhill Magnificent Seven ETF flat since January.
The bullish case rests on a rotation: Morgan Stanley expects capital to move from semiconductors back to hyperscalers as investors reward more disciplined AI spending and question whether chip outperformance can last.
Goldman says valuations already look unusually cheap, with hyperscaler price-to-earnings ratios near levels seen in March 2020 and October 2022, two major market bottoms.
That weakness stands out because semiconductor stocks have surged and the S&P 500 is up double digits, even as Nvidia, Alphabet, Meta, Microsoft, Tesla, Apple and Amazon remain central to the AI trade.