Benzinga·2026-02-23 11:11Core Viewpoint - The "Magnificent Seven" stocks are experiencing a downturn due to concerns over rising investments in data centers and high earnings growth expectations, prompting analysts to suggest a shift towards cyclical areas of the market [1]. Group 1: Market Trends - The AI rally is expanding beyond mega-cap stocks, indicating that investors can benefit from a wider range of companies poised to gain from AI advancements [2]. - The decline in Big Tech stocks coincides with their AI investments benefiting various downstream players, including data center builders and energy infrastructure companies [2]. Group 2: Analyst Insights - The "Magnificent Seven" stocks are perceived to be struggling due to exhaustion, although they are still regarded as exceptional companies [3]. - There is a notion of a "Great Valuation Rotation" occurring in the markets, suggesting a global rebalancing trade that may persist through 2026 [3].