Mag7 shares have been lagging the market for months now. Is it time to buy them?

Quotes for the "Magnificent Seven" U.S. technology companies are experiencing the longest period of underperformance from the broad market since the growth cycle began more than three years ago. The bigtechs have gotten so cheap that some professional investors have seen the current stock prices as a buying opportunity, MarketWatch writes.

The Roundhill Magnificent Seven exchange-traded fund (ETF), which invests only in stocks of the "Magnificent Seven" companies, fell more than 7% between November 2025 and Jan. 20, 2026, even though the S&P 500 index - a mirror of the U.S. stock market - declined only 0.6% over the same period. On Jan. 21, the outflow of funds from bigtech stocks reached a climax, and the P/E multiple for the Magnificent Seven, which correlates the price of the securities to the expected earnings of these companies, fell to its lowest level since Sept. 12, MarketWatch reports.

David Wagner, portfolio manager at Aptus Capital Advisors, told the publication that he is building up positions in the cheapened securities of Amazon, Microsoft and Meta, whose quotations have declined over the past three months due to investor doubts about the justification of spending on artificial intelligence. Wagner said the market is expecting a return on AI investments "sooner rather than later because we're used to living in a world of instant gratification," but technology cycles take time. Forecasts are cautious right now, and the corporate earnings disclosure season kicking off in the U.S. could provide a positive boost to bigtech quotes, the financier added.

Nationwide's chief market strategist Mark Hackett believes that with most of the "Magnificent Seven" companies reporting earnings in the coming weeks, their shares could jump. "The instinct to redeem drawdowns generally persists," he noted. That said, Hackett cautioned that the balance of risk is probably still tilted in favor of the rest of the market, but "given the volatility around earnings reports, there may well be a period of relative strength in the technology sector."

In recent months, investors have been shifting from tech giants to small-cap companies, cyclical securities and value stocks. The leadership of the Magnificent Seven is steadily narrowing: while all seven issuers outperformed the S&P 500 in 2023, in 2025 only Alphabet and Nvidia performed better than the index.

In trading in New York on January 21, shares of the main beneficiary of the AI boom Nvidia rose by 3% after an optimistic speech of the head of the company Jensen Huang and the peaceful rhetoric of US President Donald Trump on the issue of Greenland. Quotes of Alphabet at the end of trading added 2%, Amazon - 0.1%, Apple - 0.4%, Meta Platforms - 1.5%, Tesla - 3%. Microsoft's papers went down by 2.3% amid the fact that Citigroup, Mizuho and Rothschild & Co. lowered their target prices.

This article was AI-translated and verified by a human editor