Liz Thomas, a senior executive at SoFi, said she expects the "Mag 7" group of stocks to recover in the second half of 2026 [1].
This prediction comes as investors closely monitor the volatility of the world's largest technology companies. Because these stocks heavily influence broad market indices, a recovery in this group could signal a wider bullish trend for the U.S. equity markets.
Thomas said her outlook during an appearance on CNBC’s "Closing Bell" program on Wednesday [1]. She pointed toward the artificial intelligence trade and its related market dynamics as primary factors that could drive this expected rebound [1].
"I think Mag 7 comes back in the second half of 2026," Thomas said [1].
The "Magnificent Seven" typically refers to a cluster of high-performing tech giants that have historically driven significant portions of the S&P 500's gains. Their performance often hinges on the scalability of AI integration, and the continued growth of cloud computing infrastructure.
Thomas said that market participants should remain attentive to how AI-related trades evolve throughout the remainder of the year [1]. The timing of this projected recovery aligns with the second half of 2026 [1].
“"I think Mag 7 comes back in the second half of 2026."”
The projection suggests that the current valuation corrections or stagnation in the largest tech stocks are viewed by some industry executives as temporary. If the Mag 7 recovers as predicted, it would imply that the market has successfully priced in AI expectations and that these companies are beginning to realize tangible financial returns from their massive infrastructure investments.
