As the Magnificent 7 lose swagger, which stock should you buy now? Experts reveal the right strategy

For years, the Magnificent Seven tech giants commanded investors’ attention, dominating the S&P 500 Index and shaping market movements. Those days are over.

While the technology-heavy Nasdaq 100 Index is up 16% in 2026 and the S&P 500 has climbed 10%, an index of the Mag 7 has gained just 1.7%.

The artificial intelligence investment theme that propelled tech behemoths—Nvidia, Alphabet, Apple, Microsoft, Amazon, Meta and Tesla—to market leadership is far from over, but investor preferences are shifting. For example, chipmakers such as Micron Technology and Sandisk have emerged as top performers, while the Magnificent Seven are hardly getting investors' attention.

To get a sense of how quickly this has turned, consider that in April the Mag 7’s 40-day correlation to the Nasdaq 100 peaked at above 0.95, a near-perfect correlation. It recently dropped below 0.7, its lowest since 2017. Big tech and the S&P 500 “are moving together about as little as they were in 2015, when these names were only 10-11 pct of the index,” Jessica Rabe, a co-founder at DataTrek Research, wrote in a note to clients on June 30.

Within the group, however, the gap between winners and losers is huge — Alphabet has done well, while Microsoft and Meta have struggled even though their businesses remain strong, asserted Viram Shah, Founder and CEO, Vested Finance

“So, which Mag 7 stock is best? It is now really 7 separate questions.”

Instead of picking a favourite, check three simple things for each company:

For Indian investors, the sensible order is: index funds first, individual stocks second. Build your core US exposure through a diversified fund, Shah adds

“Then, if you strongly believe in one of these companies, buy a small amount on top — small enough that you can sit through a 20-30% fall without panicking, because every one of these stocks has fallen that much at some point in the past year.”

So, after building your core portfolio with an index fund, if you are wondering which AI stock deserves a small place in it, Santosh Meena, Head of Research at swastika investmart, says, ‘It's Meta.’

“It offers the strongest risk/reward, with a relatively attractive forward P/E (17-22x), robust ad revenue growth, rising user engagement via Threads, and clear AI monetisation upside—all while generating strong free cash flow for buybacks and dividends.”

Nvidia remains the top choice for investors looking for pure AI growth, although its stock is expensive and faces rising competition. Microsoft offers stability, while Alphabet stands out for its attractive valuation. Apple and Amazon are growing more slowly, and Tesla continues to face valuation and execution challenges.

“META balances valuation, momentum, and execution best right now, though diversification is always wise given tech volatility,” Meena asserts.

Sanchari Ghosh is an Assistant Editor at Mint with over 12 years of experience in journalism, specialising in personal finance, DLT & DeFi, geopolitics and foreign policy, with a particular emphasis on how these areas intersect. <br> She writes extensively about how money works in everyday life—helping readers navigate personal finance decisions. <br> As AI reshapes investing behaviour, capital is increasingly flowing into decentralized ecosystems, redefining how assets are managed, traded, and valued. She focuses on explaining how money flows within frameworks like Distributed Ledger Technology (DLT), DeFi protocols, and crypto markets—while also exploring what the future of money could look like in a trustless, programmable financial world. <br> She also focuses on immigration-related issues, simplifying complex topics around visas, passports, overseas financial planning, and the many practical challenges Indians face while moving or living abroad. <br> Alongside personal finance, Sanchari has a strong understanding of international politics, contemporary and historical conflicts, and global state decisions. She closely tracks how geopolitic...