The Magnificent Seven stocks have largely underperformed the broader S&P 500 benchmark throughout 2025. This marks a notable shift from their dominant run in recent years. The rotation away from mega-cap tech names suggests investors are diversifying their portfolios across different sectors and market caps. Whether this signals a broader market normalization or temporary consolidation remains a key question for traders and portfolio managers watching the space. The divergence is worth tracking as it may reshape investment strategies heading into the latter half of the year.