23 February 2026 2 minute read
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The “Magnificent Seven” begin to split as two tech giants break away from the pack.

Recent market data shows a clear shift within the “Magnificent Seven” tech giants. Despite their outsized influence in recent years, only two of the seven have actually outperformed the S&P 500 since January 2025. The rest have delivered more muted returns as investors reassess high valuations and the uneven impact of AI‑related spending (see Figure 1).

Figure 1: The Magnificent Two – Magnificent Seven performance (per cent)

Past performance is not a reliable indicator of future returns.

Note: Rebased at January 1, 2025.

Source: Aviva Investors, Bloomberg. Data as of February 13, 2026.

This divergence highlights an important trend: the group is no longer moving in lockstep. Instead, performance is becoming more differentiated, with company‑specific fundamentals, rather than broad tech momentum, driving returns. Investors are reassessing stretched valuations, rising capital‑expenditure demands and the uneven earnings impact of AI.

This reinforces the need for a more selective approach. Market leadership is narrowing, and relying on the mega‑cap complex as a single theme is becoming less effective in today’s market environment.

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