Magnificent Seven ETF Declines Amid Tech Sector Headwinds
Concerns Over Guidance and Investment Plans Weigh on MAGS
AI Network Stocks Emerge as Growth Play Amid DeepSeek Development
The Roundhill Magnificent Seven ETF (MAGS) has faced headwinds in recent weeks, declining by 2.4%. Concerns regarding lackluster guidance and plans for significant capital investment have contributed to this decline.
Alphabet and Amazon Lead Losses
The drop was primarily driven by Alphabet's (GOOG, GOOGL) 9.2% decline and Amazon's (AMZN) 3.6% decrease. The tech sector continues to grapple with the aftermath of the DeepSeek-driven sell-off in January.
DeepSeek as Catalyst for AI Innovation
Industry experts view the development of DeepSeek as a potential catalyst for AI innovation and adoption. Former OpenAI employee Zack Kass emphasizes the progress and cost reduction implications.
AI Network Stocks Positioned for Growth
As AI models like DeepSeek's R1 increase compute demand, the demand for high-speed networking solutions is expected to rise. Analysts and industry leaders identify AI network stocks as a potential growth play.
Ciena, Coherent, and Celestica Benefit from AI Workloads
Ciena (CIEN), Coherent (COHR), and Celestica (CLS) are seen as top beneficiaries due to increased demand for robust and high-speed networking infrastructure.
Morgan Stanley Bullish on Arista Networks
Meta Marshall, a research analyst at Morgan Stanley, is optimistic about AI networking company Arista Networks (ANET). She believes shares are now more attractive following the DeepSeek-driven sell-off.