Mixed results from Amazon, Alphabet, Microsoft, Meta and Apple highlighted XLK's broader exposure, while the Magnificent Seven ETF fell about 0.5% after earnings and is now flat in 2026.
XLK holds Nvidia, Apple and Microsoft, plus AI-linked storage and hardware names including Sandisk, Western Digital, Seagate and Intel, helping offset weakness in software stocks.
The fund trades at just under 25 times forward earnings, below its five-year average of 27.5 and cheaper than SOXX at about 27 and the Magnificent Seven at 31.
Could XLK’s strong run unravel if the memory chip shortage eases or AI demand cools sooner than expected?
How might soaring energy and memory costs reshape the tech sector—and could this spark a backlash against relentless AI expansion?