Big Tech is dodging the chip stocks wipeout: AlphaCheck

Big Tech is dodging the chip stocks wipeout: AlphaCheck Jared Blikre Wed, July 8, 2026 at 12:00 PM GMT+2 2 min read MAGS SOX=F ^SOX ^GSPC Memory stocks are in a bear market . But the Magnificent Seven are back on offense — leading the market higher once again. Since the late-June turn in growth stocks, the Roundhill Magnificent Seven ETF ( MAGS ) is up 8%, while the S&P 500 minus the Mag Seven — tracked by the Defiance Large Cap ex-Mag 7 ETF ( XMAG ) — is basically flat.

Meanwhile, the PHLX Semiconductor Index ( ^SOX ) is down 12%. The chart below, built using Yahoo Finance's AlphaSpace , shows that same split over the past five trading days, with megacaps gaining ground while semiconductors break down. This embedded content is not available in your region.

That is a sharp reversal from late June, when the market's biggest AI stocks had just absorbed a $2. 7 trillion wipeout and investors were questioning whether megacap leadership had finally cracked. Instead, Big Tech is back in charge — and the rebound is not limited to seven stocks.

Cybersecurity stocks are back near records as software surges , while strength is also showing up in biotech, tech disruptors, China tech, crypto, and aerospace & defense. The market is treating the chip stock wipeout as damage to a crowded hardware trade, not a reason to dump every corner of the growth trade. Apple ( AAPL ) is the standout.

The stock is leading the Magnificent Seven higher — up 13% since the late-June turn — after a textbook retest of its old ceiling near $275, a former resistance level that has now turned into potential support. Apple is back within 1% of its all-time closing high. This embedded content is not available in your region.

Even Nvidia ( NVDA ) is outperforming the chip group. Of the 60 semiconductor stocks in the Yahoo Finance basket, it was one of only two names in the green, bouncing off its 200-day moving average — even as the SOX dropped more than 4%. The broader tape also looks better than the chip wreck suggests.

The NYSE and S&P 500 advance-decline lines — running totals of how many stocks are rising versus falling — are printing new highs. That helps resolve a participation problem that had been hanging over the spring breakout, when the S&P 500 was making new highs before the average stock confirmed. The chip sell-off is real.

But as long as megacaps keep leading, software keeps confirming, and breadth keeps making new highs, the wipeout still looks more like rotation than a full-market growth unwind. Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.

com.