No longer magnificent? How Apple, Microsoft and other Mag 7 stocks are crumbling under AI pressure

Nearly 2.3 trillion dollars has been wiped off the combined market value of the Magnificent Seven during June, with the index falling more than 13 percent from its recent peak. Concerns are growing over massive AI infrastructure spending by Microsoft, Amazon, Alphabet and Meta, which is pressuring free cash flow while investors demand proof of revenue returns. Investors are now rotating away from heavy capex tech giants toward chipmakers and memory suppliers that benefit from the AI ecosystem without bearing the spending burden.