The Magnificent 7 technology stocks that have powered the bull market of the past two years have fallen into a correction, defined as a decline of 10% or more from recent highs.
The sharp decline, which has largely occurred in the past month, has erased $1.4 trillion in market value from the leading mega-cap tech names. The Bloomberg Magnificent 7 Index, an equal-weighted gauge that consists of Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), and Tesla (TSLA) has fallen 10% from a peak reached last December.
Electric vehicle maker Tesla has seen the biggest decline among the technology stocks, followed by Microsoft and Alphabet. Other Magnificent 7 members, such as Apple and Nvidia, saw big pullbacks at the start of the year before rebounding somewhat.
Worst Performer
So far in 2025, only Meta Platforms stock is in positive territory, having risen 10% following a record-setting rally that lasted 20 consecutive days. However, Meta’s stock has also experienced a drawdown in recent trading sessions, falling 7% in the past five days.
Tesla’s stock is the worst performer among the Magnificent 7. Down 20% on the year, the automaker’s stock is technically in a bear market. Analysts say the Magnificent 7 stocks have been hurt by issues that include the threat of trade tariffs from U.S. President Donald Trump and the emergence of Chinese artificial intelligence (AI) app DeepSeek.
In Tesla’s case, the electric-vehicle maker has also been hit by poor sales reports and heightened competition, notably in China. The mega-cap technology stocks face their latest test later today (Feb. 26) when chipmaker Nvidia reports its financial results.
Is NVDA Stock a Buy?
With its earnings on tap, we’ll look at Mag 7 stock Nvidia. As one can see in the chart below, Nvidia’s stock currently has a consensus Strong Buy rating among 35 Wall Street analysts. That rating is based on 33 Buy and two Hold recommendations assigned in the last three months. The average NVDA price target of $177.87 implies 40.46% upside from current levels.
