# Chip stocks are carrying the entire market while tech giants bleed — long Nvidia and AMD, short Microsoft and Apple

_AI-generated trading idea · LONG · AAPL, AMD, MSFT, NVDA_

> Canonical page: https://commonquant.ai/research/for-you/chip-stocks-are-carrying-the-entire-market-while-tech-giants--7df1ea24-b7be-44ef-abfd-d20289f5810a

The overall stock market is having its best quarter in years thanks to chipmakers, even as the giant tech companies known as the 'Magnificent Seven' have lost trillions in value. This mismatch creates a trade: buy the companies powering the rally and sell the giants that are dragging it down.

## Idea

There is a massive split happening in the stock market right now. The headlines say the S&P 500 and Nasdaq are having their best quarter in six years, powered almost entirely by chip and semiconductor companies. But at the exact same time, the seven biggest tech giants — Apple, Microsoft, Amazon, and the rest — have watched $2.3 trillion evaporate. This means the market's gains are concentrated in a narrow group of hardware companies while the software and internet giants are sinking. By betting on chipmakers like Nvidia and AMD while simultaneously betting against the struggling giants, you're positioning for the trend that's already working.

## What happened since

- **AMD** · LONG · T+1 0% · T+5 0%
- **AAPL** · LONG · T+1 1.7349% · T+5 8.0523%
- **MSFT** · LONG · T+1 3.0186% · T+5 3.6781%

_Price changes since publication; updated 2026-07-12T03:12:15.362932+00:00._

## Key details

- Symbols: AAPL, AMD, MSFT, NVDA
- Timeframes: D1
- Tags: \#stocks, \#semiconductors, \#rotation

## Community

- Upvotes: 2
- Views: 0
- Copies: 0
- Cosigns: 0

## News sources

- [Magnificent Seven stocks lose $2.3 trillion in June 2026](https://finance.yahoo.com/markets/stocks/articles/magnificent-seven-stocks-lose-2-121343239.html) — Yahoo Finance
- [S&P 500, Nasdaq Head for Best Quarter in Six Years](https://www.wsj.com/livecoverage/stock-market-today-dow-sp-500-nasdaq-06-30-2026/card/s-p-500-nasdaq-head-for-best-quarter-in-six-years-oH1gS4IlKiVD5cRZ2ydr?siteid=yhoof2&yptr=yahoo) — Wall Street Journal
- [Nasdaq heads for best Q2 since 2020 as chip stocks surge](https://finance.yahoo.com/markets/stocks/articles/nasdaq-heads-best-q2-since-151926255.html) — Yahoo Finance

## Related ideas

- [Apple and Meta pivot to custom chips as Nvidia delays — long the alternatives](https://commonquant.ai/research/for-you/apple-and-meta-pivot-to-custom-chips-as-nvidia-delays-long-t--bc46d449-4362-477b-92c0-0fa2c60e0416)
- [Massive $5.4 billion floods into chip stocks — ride the wave on SOXX](https://commonquant.ai/research/for-you/massive-5-4-billion-floods-into-chip-stocks-ride-the-wave-on--fe049096-c3e9-4e9b-998d-3c9ac9783518)
- [Nvidia chips are delayed but Meta is making their own — rotate into software](https://commonquant.ai/research/for-you/nvidia-chips-are-delayed-but-meta-is-making-their-own-rotate--88452303-dd1c-4d0a-a8eb-86fd695bcfbe)

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