Magnificent Seven Shed $2.3 Trillion in June as AI Trade Shifts to Chip Suppliers

According to Jim Cramer on CNBC, on Tuesday, June 30, the Magnificent Seven shed roughly $2.3 trillion in market value during June as investor focus shifted from hyperscalers to semiconductor suppliers. The seven mega-cap stocks—Apple, Alphabet, Amazon, Microsoft, Meta, Nvidia, and Tesla—faced pressure amid concerns that massive AI infrastructure spending may not generate sufficient returns. Cramer said the biggest beneficiaries are companies supplying memory chips and networking equipment, including Micron, Sandisk, Intel, AMD, and Marvell Technology. These chipmakers posted strong earnings growth and analyst upgrades in the second quarter as demand for AI compute outpaced supply, driving up component costs for data center operators.
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