Magnificent Seven ETF Drops 11%

TECH
Magnificent Seven ETF Drops 11%

The "Magnificent Seven"—Apple, Amazon, Alphabet, Microsoft, Nvidia, Meta, and Tesla—have hit a rough patch, with the Roundhill Magnificent Seven ETF dropping over 11% from its December 17, 2024, peak. This decline, highlighted in reports on February 27, 2025, underscores a broader correction gripping these tech titans, a trend that’s dominated discussions in the last two days. Investors are growing wary, questioning the hefty returns promised by massive AI investments.

Nvidia’s recent earnings, while showing revenue growth, revealed shrinking margins, amplifying concerns about profitability. Tesla’s sales miss and Alphabet’s aggressive AI spending plans have added fuel to the fire, while even Meta’s outperformance can’t fully offset the group’s malaise. This collective stumble—down from a euphoric high—reflects a shift in sentiment: the once-unassailable megacaps are now under scrutiny as markets demand tangible results over speculative hype. As of March 1, 2025, this correction signals caution, not collapse, with analysts watching closely to see if stabilization, like Nvidia’s recent flatline, could spark a rebound—or if deeper cracks in the AI-driven boom are yet to emerge. For now, the "Magnificent Seven" face a reality check.

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TECH
CEO Targets $40B Revenue Goal

Super Micro Computer cofounder Sara Chiu-Chu Liu Liang, wife of CEO Charles Liang, sold all of her personally held shares—46,293 shares worth $2.3 million—just days after the company regained Nasdaq compliance. Similarly, SVP George Kao sold 71,720 shares for $3.6 million, reducing insider holdings.

Meanwhile, both Liang and Kao received new restricted stock units set to vest over four years. Charles Liang was also awarded 1 million stock options for hitting revenue targets, part of a 5 million-share performance grant.

Super Micro, closely linked to Nvidia, saw a 3,000% stock surge before a Hindenburg short-seller report accused it of accounting issues. EY, its former auditor, resigned, citing concerns about management integrity. This week, Super Micro issued delayed financial reports, avoiding Nasdaq delisting but still faces SEC and DOJ investigations.

CEO Charles Liang insists the company is focused on reaching $40 billion in revenue in 2025 despite ongoing lawsuits and regulatory scrutiny.

TECH
Intel Delays Ohio Chip Factory

Intel is delaying the opening of its Ohio chip facility, pushing the first plant’s completion to 2030 or later, with operations possibly beginning in 2031. The second plant in its $100 billion complex will likely follow in 2032. Originally, production was set to start in 2025.

The company cites market demand and capital management as reasons for the delay. “This has always been our approach, as it allows us to manage capital responsibly,” said Naga Chandrasekaran, Intel’s head of global operations.

Once a dominant semiconductor leader, Intel has struggled to keep up with the AI revolution, losing 60% of its value in 2024. August saw its worst stock drop in 50 years, followed by a 15% workforce reduction and CEO Pat Gelsinger’s firing in December. Despite an $8 billion government grant under the CHIPS Act, Intel remains under pressure, facing declining sales and increasing competition in semiconductor manufacturing.

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