The "Magnificent Seven," a group of dominant tech stocks, is facing turbulent times as tariff concerns and slowing growth weigh heavily on their performance. Apple, a key member of this elite group, has seen its stock price approach a one-year low, down 9% in 2025 after stellar returns in 2023. The company’s struggles stem from declining iPhone sales, particularly in China, where competition from domestic brands has intensified. Additionally, slower product refresh cycles and regulatory scrutiny in the U.S. and Europe have further dampened investor sentiment.

Tesla, another Magnificent Seven member, has also faced challenges, with its stock plunging nearly 30% this year. While other members like Nvidia and Microsoft continue to benefit from the artificial intelligence boom, Apple and Tesla have become drags on the market. Apple alone accounted for a 7% drag on the Morningstar US Market Index’s total return in the first quarter of 2025. This divergence highlights how the group no longer moves in lockstep as it once did.

Despite these setbacks, analysts remain cautiously optimistic about Apple’s future. The company’s recent strides in artificial intelligence, including generative AI features for iPhones and iPads, are seen as potential growth drivers. Renowned investor Dan Niles has predicted that Apple could still emerge as the strongest performer among the Magnificent Seven by year-end, citing its new AI strategy as a catalyst for consumer upgrades.

However, broader market dynamics suggest that the Magnificent Seven’s dominance may be waning. After contributing disproportionately to S&P 500 earnings growth in 2023 and 2024, their share is expected to decline in 2025. Analysts forecast a narrower margin of outperformance compared to previous years as growth broadens across other sectors of the market.