The Magnificent Seven trade has entered correction territory after a sharp retreat across Wall Street’s largest technology companies.

The Roundhill Magnificent Seven ETF, which trades under the ticker MAGS, fell 1.4% on June 23 to close at $63.14. The fund is now down 11% from its record closing high of $70.94 reached on May 14.

A correction is generally defined as a decline of at least 10% from a recent high. The latest close pushed MAGS below the roughly $63.85 level needed to cross that threshold.

MAGS provides equal weighted exposure to Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. Each company receives a similar allocation, unlike market cap weighted indexes where the largest firms carry more influence.

The equal weighted structure means weakness across several members can hit the fund quickly. Tesla fell about 6% on Tuesday, Nvidia dropped more than 4%, and Alphabet also declined as selling spread across technology and semiconductor stocks.

The broader market was under pressure as well. The Nasdaq Composite fell 2.2%, while the S&P 500 declined 1.4%. The Philadelphia Semiconductor Index dropped 7.9% as investors reassessed the amount of debt and capital spending flowing into AI infrastructure.

That makes the MAGS decline more than a simple rotation into other parts of the market. Investors are also questioning how quickly the largest technology companies can generate returns from hundreds of billions of dollars in AI spending.

The Magnificent Seven had become a concentrated way to bet on artificial intelligence. Nvidia supplied the chips, Microsoft backed OpenAI, Amazon sold computing capacity through AWS, and Alphabet and Meta built AI into products used by billions of people.

That trade is now facing more competition. Memory companies, data center operators, networking firms, robotics developers, and enterprise software providers have emerged as alternative ways to gain exposure to AI growth.

MAGS still manages roughly $3.5 billion and remains one of the most direct vehicles for concentrated exposure to the seven companies. But the correction shows that even the market’s strongest AI names are vulnerable when valuations, spending, and interest rate expectations move against them.

The pullback is the fund’s sharpest since April 2025. Whether it remains a correction or develops into a deeper decline will depend on earnings growth, AI investment returns, and whether buyers return after the latest selloff.