Magnificent Seven AI Stocks Slide After 25% SpaceX Drop as Export Curbs Stoke Bubble Watch
Updated
Updated · UnHerd · Jul 13
Magnificent Seven AI Stocks Slide After 25% SpaceX Drop as Export Curbs Stoke Bubble Watch
2 articles · Updated · UnHerd · Jul 13
Summary
Most Magnificent Seven stocks have fallen since peaking around late May and early June, leaving the Nasdaq stuck sideways after topping 27,000 and putting investors on alert for a broader AI-led correction.
A more than 25% drop in SpaceX shares from above $200 after its IPO reinforced concerns that new AI listings are draining capital just as profit-taking gathers pace.
US export controls on Anthropic’s Mythos and Fable models — later lifted — rattled overseas customers, who began diversifying toward Chinese AI offerings to reduce reliance on US suppliers.
Rising token-based pricing has also pushed businesses toward cheaper Chinese models, undermining confidence in the revenue growth assumptions that helped justify lofty valuations for major US AI firms.
With US earnings season starting this week, investors are watching whether weakness stays concentrated in tech or forces wider selling as funds cover losses elsewhere.