Mentions of the Magnificent Seven in Bloomberg Terminal news stories have dropped to roughly 1,400 a month, the lowest level since Q4 2023. That's down from a peak of about 4,300 in Q1 2024 — a decline of roughly two-thirds, according to data highlighted by The Kobeissi Letter on X.
Why the label is fading
The group — Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla — dominated market chatter in 2023 and 2024. But the attention has cooled as investors pivot toward companies tied directly to heavy AI infrastructure spending, rather than the megacap tech names as a bloc.
The numbers back that up. The average three-month pairwise correlation among the seven stocks has fallen to 0.27 from 0.78 in mid-2025. That means the stocks are moving far less in lockstep than they used to, and their valuations are diverging.
Citigroup strategists have argued the Magnificent Seven label is no longer relevant for assessing positioning in the US AI trade. The name may have outlived its usefulness, they say, as the stocks' fortunes split along AI capex lines.
A familiar pattern
This isn't the first time a catchy acronym has lost its grip on market narrative. The earlier groupings FANG and FAANG saw their monthly mentions peak at nearly 2,800 in Q4 2018, then plunge by about 82% to roughly 500 by early 2020.
The Magnificent Seven's slide mirrors that arc, though from a higher peak. The label emerged in 2023 as a shorthand for the tech giants that powered the bull market. Now it's becoming a historical footnote in real time.
What investors are watching
The shift isn't just about sentiment. The correlation data suggests the market is treating these companies as distinct bets, not one basket. Some are seen as direct beneficiaries of AI infrastructure buildout; others are facing questions about spending returns.
With mentions at a two-year low, the question now is whether the label will survive another earnings season. If the divergence continues, the Magnificent Seven may go the way of FANG — a term that still gets used, but no longer describes the market's center of gravity.
