Asger Risom
The Magnificent Seven have all fallen sharply from recent highs as AI-driven momentum fades, with new geopolitical tensions and technological disruptions adding pressure across the tech sector.
After years of driving market gains, the world’s biggest tech stocks are losing momentum. A broad pullback is now raising questions about how durable the AI-fueled rally really is.
Fresh pressures—from geopolitical tensions to industry disruptions—are accelerating the downturn across the sector.
Every member of the so-called Magnificent Seven is now down by double digits from recent highs, according to Bloomberg. The group’s losses have deepened as the war in Iran adds strain to an already unsettled AI trade.
Microsoft has been hit hardest, falling about 32% from its October peak and heading for its worst start to a year on record. Meta has dropped roughly 25%, while Alphabet is down around 15% from its recent high. Nvidia and Amazon have also slipped into negative territory this year.
A Bloomberg index tracking the group entered correction territory in mid-March, closing more than 10% below its previous peak.
Mounting Pressure
Recent setbacks have added to investor concerns. UBS described Microsoft’s Copilot AI product as underwhelming, while Meta lost a major court case tied to social media addiction.
At the same time, several companies remain closely tied to OpenAI, which has moved to strengthen its position in entertainment through a major deal with Disney.
The shift marks a sharp reversal from recent years of rapid growth. The same Bloomberg index rose 107% in 2023, followed by gains of 67% in 2024 and 25% in 2025.
Still, some investors see opportunity emerging amid the decline. “Big Tech is where valuations are reasonable, where you have real growth,” Robert Edwards of Edwards Asset Management said, according to the report.
Musk Faces Pushback
Elsewhere, Elon Musk’s business ventures encountered resistance in Baltimore. The Boring Company had proposed building a free tunnel near the Ravens’ stadium, an idea initially welcomed by the team.
However, the plan quickly unraveled. Within hours, city officials filed a lawsuit against Musk’s AI firm xAI, alleging its chatbot distributed harmful content.
Soon after, the Ravens withdrew support for the tunnel project following discussions with local authorities. Mayor Brandon Scott said it was “not something that I would have approved.”
The developments highlight growing friction around Musk’s companies, which once found strong backing in the region.
Cyber Stocks Hit
Cybersecurity firms also faced sharp declines after Fortune reported that Anthropic is testing a powerful new AI model with advanced cyber capabilities.
Stocks including CrowdStrike, Palo Alto Networks, and Zscaler fell more than 5%, while others dropped even further. The Global X Cybersecurity ETF slid over 6% at one point, extending its losses this year.
A leaked draft described the model as “currently far ahead of any other AI model in cyber capabilities” and warned it could expose vulnerabilities faster than defenders can respond.
Anthropic confirmed it has begun testing the system with select users.
Sources: Bloomberg, Fortune
