It’s been a brutal month for stocks, with tech stocks leading markets lower, just as they led the rally in 2023 and 2024.
And though the recent sell-off action has focused much attention on the so-called “Magnificent Seven” juggernauts, just one rung below these names is a crop of tech highfliers that have also experienced steep losses in recent weeks.
Netflix (NFLX), AMD (AMD), Micron (MU), Dell (DELL), and Palantir (PLTR), among others, are some of the names that have been washed out in the midst of this latest market rout.
And though some of these stocks caught a bid on Wednesday amid a tech rebound, some on Wall Street are warning recent volatility has contained an even more sinister picture underneath the stock market’s surface.
Recent price action has “really felt unwindy,” Mizuho analyst Jordan Klein wrote in a note to clients on Friday. “Not like total panic or capitulation, but getting pretty close.”
Netflix stock has fallen about 15% from the 52-week highs it reached just one month ago, when the stock was trading above $1,000 a share.
Klein called out “past retail and momentum thematic favorites” in the tech, media, and telecom space, including names like AppLovin (APP), Affirm (AFRM), Oklo (OKLO), and Reddit (RDDT). All have seen shares fall between 30% and 50% over the past month.
Chipmakers like AMD and Micron, along with Super Micro (SMCI), Intel (INTC), and ON Semiconductor (ON) are all down at least 40% from their respective 52-week highs, according to data compiled by Yahoo Finance.
Shares of Palantir, a previous momentum play on Wall Street, have plunged 30% from the closing record it reached on Feb. 19. Dell stock has also tumbled roughly 50% from its own 52-week peak.
Of course, some of these names have also battled fundamental issues.
Palantir often trades like a meme stock, and shares sold off last month over fears the US government will dramatically cut defense spending. Netflix’s heavy content spend and possible engagement headwinds have been called out by analysts concerned over its valuation.
And chip stocks have faced increased competition at home and abroad, with February’s DeepSeek sell-off highlighting concerns over the health and longevity of the artificial intelligence trade at large.
The Mag 7 players that drove two-year bull market gains — Nvidia (NVDA), Tesla (TSLA), Alphabet (GOOG, GOOGL), Amazon (AMZN), Meta (META), Apple (AAPL), and Microsoft (MSFT) — are all down between 16% and 25% from their 52-week highs, with Apple and Nvidia sitting on the narrowest and largest losses among the group. The exception, of course, is Tesla, which is down just less than 50% from a record close in December.
Read more: How does Nvidia make money?
As a group, the Magnificent Seven names helped lift overall profit growth for the benchmark S&P 500 (^GSPC), while non-technology companies have fallen behind.
The rally in some of their smaller tech peers suggested this enthusiasm was not limited to these “magnificent” names, with the AI boom fresh on investors’ minds.
But recent outlook disappointments have weighed on this story too.
Take AMD, for example. The company delivered a strong fourth quarter earnings report, yet the stock still tanked after its disappointing growth forecast for its data center business, signaling a possible momentum snag in AI chips.
“A regime change is taking place in the markets and what used to work is not going to work from here anywhere to the same degree,” independent economist Peter Boockvar wrote in a note on Tuesday. “The stock market has a history of handing the baton over to other things and now seems to be one of those times.”
Boockvar, who argued tariffs and political uncertainty cannot be solely responsible for this drawback in markets, added, “You lose the special 7 stocks, which at its peak made up about 35% of the S&P 500, you are without a net in the broader market unless the baton is immediately passed to someone else.”
But with uncertainty still in the driver’s seat and all 11 sectors in the red over the past month, it’s unclear which pockets of the market even have the capacity to finish the race.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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