Today’s “Top 40” radio in the stock market has been the “Magnificent Seven” or the “Mag Seven.” But investors in artificial intelligence are now looking for the equivalent of deep cuts and B-sides for some variety. Hannah Erin Lang writes in The Wall Street Journal:
Individual investors’ yearslong love affair with the market’s biggest tech stocks is starting to cool off. Retail traders are buying fewer shares of Microsoft, Apple, Amazon.com, Meta, Nvidia, Alphabet and Tesla. Instead, they are flocking to newer AI trades: chip stocks like SK Hynix 000660 -4.23%decrease; down pointing triangle, for example, or the Roundhill Memory exchange-traded fund, according to data from flow-tracking firm Vanda Research.
That reflects a broader shift in the market in which the group of seven market-leading tech giants have at least temporarily ceded the spotlight to chip makers, memory suppliers and some small and midsize shares linked to the AI build-out. All but two members of the Magnificent Seven have trailed the broader market this year: Microsoft is the biggest laggard, down 19% year to date, while Apple leads with a 23% gain.
Read more here.
