Magnificent Seven's Grip Loosens as Chip Suppliers Steal AI Rally Spotlight in June

According to Barron's, in June 2026, the Roundhill Magnificent Seven ETF (MAGS-US) declined 13 percent month-to-date, marking its worst monthly performance since launching in April 2023, while the Defiance Large Cap ex-Mag 7 ETF (XMAG-US) gained 2.6 percent. The combined market capitalization of the Magnificent Seven—Amazon, Meta, Microsoft, Alphabet, Nvidia, Apple, and Tesla—shed approximately 3 trillion dollars this month alone.

Meanwhile, market momentum has shifted toward semiconductor suppliers and chip equipment makers traditionally overshadowed by the mega-cap seven. Micron (MU-US) market value is nearing Meta's, and hedge funds have rotated into positions in Applied Materials (AMAT-US) and Broadcom (AVGO-US), signaling renewed interest in AI hardware suppliers over the infrastructure builders themselves.